We’ve all heard the old saying: “Don’t worry about what it costs, worry about what not having it will cost.” This is especially true when it comes to Income Protection Insurance. If you are injured or ill and cannot work, Income Protection will replace a portion of your income while you are off work. This can help with mortgage payments and other bills while giving you peace of mind.
How much does not having Income Protection Insurance cost?
If you are not covered by income protection insurance, the following will be your costs:
- Your own medical bills. This is just one example of how much money you could be spending on things that an Income Protection policy would pay for if you were injured or sick and unable to work. The average cost of a broken leg is €10,000 – if this happened to you without an income protection policy in place, it could be financially devastating for your family.
- Your own mortgage payments. If you have a mortgage and get sick or injured, paying the mortgage will become more difficult as time goes on due to lost wages from being at home recovering from illness/injury rather than working full-time outside the home earning an income for yourself and for your family.
- Bills and expenses such as childcare fees etc., which continue even though your salary may drop or disappear completely after an accident or illness leaves you unable to work full-time outside the home again until fully recovered (which can take months or even years depending on how severe it is). * Food & Clothing – Even though someone who gets injured isn’t able to earn as much money while they are away from work recuperating, they still need clothes so they can go out into public places like shops etcetera…and food! We all need food!
If you are sick or injured and unable to work, you might be relying on your savings or the State.
If you are sick or injured and unable to work, you might be relying on your savings or the State.
However, there are many risks involved in this. For example:
- You could lose your job because of illness or injury.
- You could become unable to work in your current job due to illness or injury. This means that even if it is a temporary problem and you will return to work, you have lost some income while not being able to earn wages from working at all!
- You may be unable to find another job (or any other source of employment) when recovering from an illness or injury — which means that any money coming into your household has stopped altogether! It also means that if something happened suddenly (e.g., if someone got ill unexpectedly), it would take longer than usual for both partners/parents etc., who make up this household unit so they would need much more money than normal just until one finds another job again – but unfortunately these things don’t always happen slowly over time! They can strike fast too sometimes…
What if you can’t go back to work and have no other income?
If you have no other income, you will be forced to rely on savings and social welfare payments. You might think that your savings would last a long time, but this is not always the case. You may have spent a large amount of money on Christmas or New Year’s, or made some large purchases in December and January. To add to this, if you are carrying any debt from credit cards or loans then your savings could be wiped out even quicker.
Social welfare payments are also limited; they won’t pay for all of your expenses for long periods of time and many people need more than just basic financial aid from the State in order to get by every month. This means that once these funds run out, there might not be enough left over after bills have been paid until payday comes around again!
Your savings will eventually run out, and could be wiped out.
You may think that you have enough savings to last you a while, but that won’t always be the case. Things happen and people get sick. Even if you have an emergency fund, it won’t cover all of your expenses. If you don’t have income protection insurance in Ireland, your savings could be wiped out by medical bills and personal loans with high interest rates. In addition, even if you can cover all your expenses for a few years after leaving work due to disability or illness until age 65 or 75 (depending on when you were born), there is no guarantee that any of your savings will still exist when it comes time for retirement.
You may also lose everything if something happens during this extended period of time without an income source while trying to survive on social welfare payments or other assistance programs—and then still have to pay off medical bills from previous years as well as personal loans taken out earlier in life prior-to-injury/illness/disability which now has no income stream attached!
The State provides some social welfare payments for people who can’t work, but it will not pay your mortgage, bills and family expenses.
The State provides some social welfare payments for people who can’t work, but it will not pay your mortgage, bills and family expenses.
The average monthly payment from the Department of Employment Affairs and Social Protection (DEASP) is €255 per week. That includes €206 for personal needs allowance, €13 for a fuel allowance and €32 in a rent supplement – just over one third of your average weekly income before tax.
That leaves you having to find the difference between what was previously taken out of your wages, and what is needed to meet your basic living costs: childcare fees; school fees; utility bills; phone bills; travel expenses; food costs; clothes etc.. If this isn’t covered by savings or benefits from other sources such as an employer or partner’s pension fund then it could mean selling up, moving back home with parents or taking out credit cards with high interest rates to cover these expenses until you are able to return back into work – if ever!
You could lose your home and still have to pay medical bills and personal loans.
You could lose your home and still have to pay medical bills and personal loans.
When you become unable to work due to an illness, injury or pregnancy, you need Income Protection Insurance to protect your income. This means that all of your monthly living expenses will be paid, including mortgage payments, rent or childcare costs. It also means that any outstanding medical bills can be paid for by the insurance company, as well as any personal loans you may have taken out – such as a student loan or credit card debt.
However if you don’t have Income Protection Insurance in place when this happens then it could mean that:
- Your home is repossessed because there is no one else paying the mortgage payment on it (or paying rent).
- The bank takes back the car they gave you while they were still lending money to buy it off them by repossession order (and then sells it).
Stop worrying about how much Income Protection Insurance costs, and worry about what NOT having it costs instead.
You probably know that Income Protection insurance can be expensive. There are some fantastic plans out there, but you have to pay for them. But did you know that the cost of not having an income protection policy is also very high?
So how much does Income Protection Insurance really cost? And how much does it NOT cost?
Let’s break it down:
Income Protection Insurance Costs:
- The monthly premium (the amount you pay per month)
- Any additional fees or charges – such as medical examinations, excesses and so on; these are usually detailed in your contract.
Conclusion
Think about the true cost of not having income protection insurance in Ireland. It’s more than just money, it’s also your peace of mind. If you are worried about how much Income Protection Insurance costs and whether it is worth it, then stop worrying!
