Income Protection: Your Greatest Asset Isn't Your House

1 day ago
2 min read

When people think about their "greatest asset," they usually point to the family home or a pension pot. However there’s a silent engine behind both of those... your ability to earn an income.

If your salary stopped tomorrow, how long would your lifestyle - the mortgage, the car, the schools actually last? At Citywide Financial, we see clients every day who insure their phones, their cars, and their pets, but leave their most valuable asset completely unprotected.

Here is why Income Protection is the most critical part of your financial roadmap for 2026.

1. The "7 Year" Reality Check

Most people assume they’d only ever be off work for a few months. However, recent industry data shows that the average income protection claim in Ireland lasts seven years.*

• The Risk: Could your savings replace seven years of salary?

• The Solution: Income protection replaces up to 75% of your gross earnings and pays out until you are deemed fit to return to work or reach retirement age.

2. Mental Health and "Invisible" Illnesses

A common mistake is thinking you only need cover for "serious" things like cancer or a heart attack.

• Wide Coverage: Unlike Serious Illness Cover, which only pays for specific listed illnesses, Income Protection covers any illness or injury that prevents you from working.

• Mental Health: Stress, anxiety, and depression now account for roughly 30% of all Irish income protection claims ** If a doctor signs you off, the policy can kick in.

3. The Government Pays up to 40% of the Cost

Income Protection is one of the most tax-efficient products in Ireland.

• Tax Relief: You can claim tax relief at your marginal rate of tax (20% or 40%).

• The Real Cost: For a tax payer on the higher rate, a €100 premium costs just €60 after tax relief.

• Company Directors: If you are a director, your company can pay the premium and it will be treated as a tax deductible expense with no BIK for you.

4. Why Your "Sick Pay" Might Not Be Enough

Many professionals rely on their employers sick pay, but this is often limited to a short period of time.

• Statutory Sick Pay: In 2026, statutory sick pay remains very limited for those without a robust company scheme.

• The Gap: We help you set a "deferred period" (the waiting time before the policy pays out) that perfectly matches when your employer's pay stops, keeping your premiums as low as possible.

5. It Moves with You

Unlike a group scheme tied to your current job, a personal income protection policy from Citywide Financial belongs to you. If you change companies, or start your own business, your safety net follows you without needing a new medical.