Income Protection Insurance Limited Company

Most income protection insurance policies are short term.

Income protection insurance limited company. Many of our clients are directors of their own limited company and in this situation there are a few options to consider when setting up an income protection policy. Formerly known as permanent health insurance income protection is an insurance policy that pays out if you re unable to work because of injury or illness. Income insurance from irish life assurance pays you a regular income if you can t work because of an injury or illness while you are employed. Either way you pay tax.

Income protection at a glance. They pay out for a set period usually up to two years while you get back on your feet and return to work. Long term income protection is available too will provide a regular income for a longer pre agreed period until you are well enough to return to work. Income protection insurance if you are working as a contractor through a limited company your finances may be very vulnerable if you were unable to work due to illness or accident.

Most providers will insure you for up to 80 of your gross earnings if the premiums are paid through your limited company. Income protection insurance can either be paid by the individual out of post tax income or paid for by the company. Income protection usually pays out until retirement death or your return to work although short term income protection policies which last for one or two years are also available at a lower cost. In terms of which method is the most cost effective comes down to the tax implications of the type of plan chosen.

You re not entitled to any illness benefit so you can insure up to 75 of your before tax income. I think when it is written personally it is called income protection non taxable and when it is written for the business it is often called key man insurance taxable i have helped with quite a few ip policies but have not seen many self employed ones so could not say whether they are harder to get pay outs from. If you buy ip with your personal post tax income you can usually arrange cover for up to 55 of your earnings. Protect your contract income.

Buying accident sickness insurance through your limited company. What you need to decide is. You have the choice whether to pay for the cover in person or run the policy through your limited company. Income protection premiums can actually be paid out of personal after tax income or by a limited company.

Your income protection insurance should do just that. Therefore if you re unable to work the insurance company will provide you with a taxable income of 2 288 per month until you get back to work or your policy ends.