Income Protection

As a self-employed contractor, the absence of employer-provided sick pay means that Income Protection is an essential safeguard for your financial stability. Contracting PLUS Financial recognises this necessity and offers Income Protection solutions that cover you until retirement age if you’re unable to work due to illness or injury. The premiums for this coverage are tax-deductible, making it a cost-effective strategy to protect your income and lifestyle.

Here’s how Income Protection stands out as a vital component of financial services for professional contractors:

1. Tax Efficiency: The premiums you pay for Income Protection are eligible for tax relief at your marginal rate. This effectively reduces the cost of your premiums, as you can claim back part of the expense from your taxes. For instance, if you’re in the 40% tax bracket, your actual cost for the premiums could be significantly less after the tax rebate​.
2. Comprehensive Cover: Unlike specific illness policies, Income Protection covers a broad range of health issues. If an illness or injury prevents you from carrying out your professional role, Income Protection ensures you receive a regular income. This coverage is extensive and inclusive, providing benefits for a wide variety of health conditions that might impede your ability to work​​​.
3. Flexibility and Control: As a self-employed individual, you have the flexibility to choose the amount of cover that aligns with your needs and financial obligations. The cover can be up to 75% of your pre-tax income, allowing you to tailor the policy to your necessary outgoings like mortgages and bills.
4. Long-term Protection: With Income Protection, you’re not just covered for a few months. If you’re unable to work for an extended period, the policy provides a continuous payout, ensuring your financial needs are met for the long haul, potentially until you reach retirement age​.
5. Support When You Need It Most: In the event of a claim, having Income Protection means you can focus on your recovery without the stress of financial pressure. This peace of mind is invaluable, knowing that your essential expenses and lifestyle can be maintained despite any health setbacks​.

Contracting PLUS Financial advisors in Cork and Dublin understand the nuances of self-employed income protection. We can provide personalised advice on the level of coverage you’ll need and the tax advantages available to you, ensuring that you have a robust safety net tailored to your individual circumstances.

Remember, while Income Protection does not cover redundancy or loss of business, it’s a strategic component of financial planning for self-employed professionals, offering a financial backup plan that aligns with the unpredictable nature of self-employment​.

For detailed advice tailored to your specific situation, talk to one of our financial advisors who can guide you through the options and help you secure the right Income Protection policy for your needs.