Why do solicitors need Income Protection?
Income Protection is something we would advise most people to look into but for some professions in particular it makes makes absolute sense to have some form of salary protection in place and this is why.
As a solicitor you have worked hard to get into your profession and are most likely earning a decent salary. This is fantastic while you’re working, but what happens if you are off work due to illness or injury over a prolonged period. In most cases the €10,556 per annum from social welfare is not sufficient to cover your outgoings. You may have savings, but savings often don’t stretch nearly as far as people expect.
Tax Relief at 40%
If you are an employee and you pay tax at 40%, you are entitled to claim back 40% of your premium as tax relief. So for example if your monthly premium for Income Protection comes in at €100, you can claim back €40 per month in tax relief, so your net premium is actually only €60 per month.
Income Protection is cheaper for solicitors than other occupations
Your occupation is the most important factor that determines the price of your income protection policy. Occupation classes range from a class 1 to a class 4 with class 4 being the more manual type of occupations, and therefore the more expensive policies. Solicitors are a class 1 which makes the premiums significantly cheaper than they are for other occupations.
I am a self employed solicitor. Should I take out Income Protection?
As a self employed solicitor you’re not even entitled to the disability benefit which employees get so unfortunately you’re totally on your own with no potential for Income unless you sort something out yourself. So yes, it’s vital that you put some sort of policy in place, or you risk having nothing to cover your living expenses, should you find yourself unable to work.
How much does Income Protection cost for solicitors?
There are many variables that can affect the cost of income protection including age, smoking status, medical history and amount of cover. Get in touch and we can run quotes for you. We deal with all of the insurers on the market so can guarantee you the best price available.