
We think of income protection as insurance for daily living. If a long-term illness or injury prevents you from working, our range of protection policies makes sure that you can still afford to look after your family.
Why you need Income Protection
A long-term illness or injury that prevents you from working can change everything. Things you take for granted, such as paying your bills or for your children’s education, become a struggle.
If you are self-employed, you will not get any help from the Government. Even if you are entitled to the State Illness Benefit, you will get just €198 per week (as of 26 March 2018).
Will this be enough to cover everything you need? Try our risk check calculator to see what the chances of this happening to you are.
By taking out Income Protection from Friends First, you can rest assured that if the unexpected happens, you can still maintain your basic standard of living and focus on the most important thing – your recovery.
Every time I rang and said “I’m going to be out of work [due to ill-health]”, my income protection policy kicked in and I didn’t have to worry. I knew they were going to look after me.
*View our customer testimonial videos.
The customers featured in our testimonial videos received a gratuity for their time.
What is income protection?
How it works
Eligibility
You must be in full-time paid work as a self-employed person, or as an employee or company director to qualify for income protection.
Your occupation, health status and age could also affect your eligibility for the cover.
As a company director or employer, you can also offer group income protection to your full-time staff.
Decide how much of your income you want to protect
This depends on your salary, your sick pay arrangements and the amount of money you need to pay your bills and maintain your lifestyle. You can insure up to 75% of your normal income up to a maximum benefit of €262,500, less any social welfare payments.
Decide when you want your income protection to start
The time between the start of your sick leave and your first income protection payment is called your deferred period. You decide whether it should be 4, 8, 13, 26 or 52 weeks. For example, if your employer will pay you for 6 months, go for a deferred period of 26 weeks. The longer your deferred period, the cheaper the cost of your income protection policy.
Decide how you want to manage your payments
Here are your options:
Guaranteed Premium
- Your premium level is set and does not change
- Your benefit level is set and does not change
Reviewable Premium
- Your premium can be reviewed every 5 years, which will give you an option of an increase in premium or a reduction in benefit
You can choose indexation on both of these options. This will make sure that your benefit increases as the cost of living goes up. Just remember, if your benefit increases, so will your premium.
Decide how long you want to keep your income protection
Many people keep their income protection until they retire. But you can pick any age between 55 and 70.
Choose your plan.
Your Financial Broker will take you through all of the above decisions and can then recommend the best plan to suit your circumstances.
- Executive Income Protection: For employers who want to offer income security to their key employees. If you work in a larger organisation, your company may offer this at a group level.
- Individual Income Protection: For the self-employed or people who are employed in a company which does not offer this benefit.
- Mortgage Income Protection: For those who want to cover perhaps their biggest monthly expense -their mortgage payment.
- Wage Protector: Designed to be a low-cost alternative to individual income protection for 24 months.
That is the hard part done. Now we get started setting up your income protection plan, which could include a medical exam or us obtaining your medical information. Then you pay your monthly payments to us.
You can adjust your plan if things change, for example, if your salary increases. However, we may need to ask you to take a medical exam to make sure your health status has not changed.
What it costs
How much you pay each month depends on:
- Your age
- Your occupation
- Your health status
- Whether you are a smoker
- How much of your income you want to protect
- Type of plan you choose
It won’t increase if you make a claim and you can claim tax relief on what you pay.
Jack, a 40-year-old non-smoking accountant, earns €85,000 a year. He has chosen to protect 50% of his salary (€42,500) until his retirement at 65. He selects a six month waiting time and chooses guaranteed, increasing premiums.
- Benefit amount: €42,500 per year
- Gross premium: €108.82 per month
Jack pays: €65.29 per month (after tax relief at 40%)*
*based on quote supplied on 17/06/2016
Try our calculator to find out how much Income Protection cover is right for you
When should I take out income protection?
Deciding when you need income protection is up to you. Generally, the younger you are – the cheaper the cost.
Using a solicitor as an example, the below table shows sample costs at varying ages.
Please note:
- This is based on a class 1 occupation, 26 week deferred period, ceasing age 65, a guaranteed level premium including indexation and escalation.
- Based on our current understanding of Revenue rules and practice (March 2017).
- Eligibility criteria and terms and conditions apply.
Making a claim
Making a claim on your income protection is straight-forward. Your dedicated Friends First claims handler will support you every step of the way.
You can make as many claims as you need until your policy ends.
Watch our video below for a step-by-step guide to making a claim.
Additional benefits
The following benefits may be available as part of your Income Protection plan:
- rehabilitation assistance
- relapse benefit
- partial benefit
- home visits with independent professionals
- return to work support
- career change guidance
Our claims team will work with you to agree what support you need to recover and rehabilitate.
We also offer a guaranteed increase option and a waiver of premium on all income protection policies.
Income Protection
Why Friends First?

If you had a money machine that paid out thousands of euro each month, what would you do if it stopped? Your income is like your Money Machine – protect it with income protection insurance.