Income Protection – Why it matters

But here’s the thing – all those goals depend on one thing: their income. Their salary pays for everything, from daily expenses to their dreams and passions. 

Income Protection is like an insurance policy for their future finances, thereby protecting their future dreams and passions. If your clients can’t work because of illness or injury, it steps in to protect their financial future. It’s not just about covering the big things; it’s about helping them keep the lifestyle they enjoy today and look forward to tomorrow. 

To help you succeed in your Income Protection conversations, we have laid out the most common reasons why your clients may believe that they do not need Income Protection, and we’ll outline why in reality they very often do.

‘Don’t worry, it won’t happen to me’

We all like to think bad things won’t happen to us. Psychologists call this the “Optimism Bias.” It’s when we trick ourselves into feeling more positive about something negative, even if the actual odds aren’t in our favour. The truth is that anyone can face tough times. A car accident or a serious illness like cancer can happen to anyone, no matter your age, gender, or job. These things could stop you from working for a long time.

It’s never too early to plan ahead though. Just like saving for retirement, it’s smart to protect yourself against losing your income as a result of sickness or injury. There’s a saying: insurance is best bought before you need it. When you’re young and healthy, it’s easier to get cover, and it usually costs less. Buying a policy early means you’ll likely get better terms and you may save money in the long run. 

‘The state will look after me’

If you’re an employee and become unwell, you may be eligible for Illness Benefit¹. Illness Benefit is paid for a maximum of 1 or 2 years depending on the number of Pay Related Social Insurance (PRSI) contributions you paid since you started work. If you’re self-employed, Illness Benefit is not available to you.

If you are still ill when your Illness Benefits are due to stop and you are likely to be permanently incapable of work, you may qualify for an Invalidity Pension¹. This is granted after an assessment where you must prove that you are unable to work for the next 12 months. If you do not qualify for an Invalidity Pension and have a disability that is expected to last for a year or more, you may qualify for a Disability Allowance¹. As a last resort you may get a Supplementary Welfare Allowance¹.

It’s important to note that living on public health benefits can be extremely challenging. None of the personal rates in any of these schemes exceed €260 a week with only limited additional payments available for (adult) dependants¹. The state simply does in most cases not provide sufficient Protection.

‘I have savings’

What if you saved a bit of money regularly for a rainy day? Could that work instead? It might for some people, but building up a safety net takes time and effort. When you do the maths, you might find the amount you’d need to save is high. It’s not easy to save up a big sum like that. 

Households have very different levels of emergency savings². Some households, especially those struggling financially, have only a few weeks’ worth of essential spending saved up in an emergency fund. Others may have a few months, but when you’re unable to work for multiple years, the amount of lost income quickly adds up.

Losing your income can be costly. What if you become permanently unable to work at the age of 45? Will you be able to pay your rent, mortgage, and households bills until you start receiving a pension? And will your pension even be sufficient when you do not have a regular income to save for it? A (long-term) disability or illness may also result in additional costs (rise of medical bills, additional spending on childcare or household help).

‘My partner has a regular income’

At its core, this argument makes sense. Why pay for an insurance policy if your partner’s income can cover the basics? Especially if your partner earns most of the family’s income.

But in most cases, losing one income will seriously affect your standard of living. People often think they can cut costs more than they realistically can.

Nor is your partner’s income guaranteed. Your partner may also lose their ability to provide an income or lose their job. Plus, while Ireland has one of the lowest divorce rates in the EU, the number of couples getting divorced has been rising³.

‘It is too expensive’

Many people think Income Protection is too expensive. But that’s not always true. For example, a 40-year-old could get an Income Protection plan that would pay €1,000 a month if they couldn’t work because of illness or disability for just €20.75 a month⁴. That’s similar to the average monthly cost of pet insurance for a young dog⁵. Plus, you may be able to claim tax relief on your Income Protection premium, which means that in the example the net cost would only be €12.45 for a higher rate taxpayer.

When it comes to affordability, the question may also be whether you can afford not to protect your income. When you get sick or injured and you lose your main source of income, your daily expenses remain mostly intact. Can you afford your mortgage payments and your grocery bill without your monthly income? Can you afford not to protect it?

And remember, as is the case for all types of insurance, your client needs to buy it before they need to use it. Insurance is better bought one year too early than one minute too late. Right now, there’s an even better reason to get Income Protection today: 

For limited time only - until 28 February 2026, Zurich are offering cashback of €250 on all new individual Income Protection policies.

Click here for the Terms & Conditions.

Sources: 

¹Citizens Information, January 2026

²Central Statistics Office, Survey on Income and Living Conditions (SILC) 2024

³Central Statistics Office, Measuring Ireland's Progress 2023

⁴Cover based on 40-year-old non-smoker, office-based employee, deferred period of 26 weeks, cover to age 60 (20 years). including government levy (currently 1% as at 1 January 2026 and may change in the future), includes a 15% discount.

⁶Switcher, How to get the best value pet insurance in Ireland, 2025