Income Replacement
Otherwise known as PHI (Permanent Health Insurance)  it provides an on-going income right up until retirement should you be unable to work as a result of an illness, injury or disability . Thistype of insurance is ideal for self employed individuals as they are no doubt aware that as a self employed individual, there is absolutely no social welfare entitlement with regards to sick pay should you become unable to work due to accident or illness.

PHI can protect up to 75% of your declared P60 income and even better, you can claim tax relief on the premiums that you pay at your tax rate. So some one who is paying 41% tax would be able to claim 41% tax relief on the premiums each month.

Its not only designed for the self employed. In Ireland there is no obligation on your employer to pay any knid of sick pay, so we have to look after ourseleves in that regard. Again, you can claim tax relief on the monthly premiums and if your an employee, you can insure up to 75% of your wages minus your social welfare entitlement of approx €11,000. So if someone is earning €35,000 per year, we can insure 75% of €35,000 less €11,000 = €15,250.

Could you live on the current social welfare benefit ?