WageProtector. Income Protection. Protecting your pay in the event of illness or injury

Transcription

1 WageProtector Income Protection Protecting your pay in the event of illness or injury

2 What is WAGEPROTECTOR? WageProtector is an insurance product that provides you with a replacement income if you cannot work due to any illness, injury or disability. It would be comforting to be certain that you would always be able to work, earning a good income and supporting your family and lifestyle. Unfortunately, life is full of uncertainties and we can never be sure what is around the next corner. The risk of work-related injuries is persistently higher in the construction sector. 7,431 non-fatal work placed injuries were reported to the Health and safety Authority in 2014.* * Source One in three people in Ireland will develop cancer during their lifetime. ** These are frightening statistics, particularly if you are self-employed and therefore not entitled to the State Illness Benefit. ** Source: Irish Cancer Society, Central Statistics Office 2013 Have you thought about how you would manage without your regular income? Employed / PAYE State Illness Benefit, 2015 State Illness Benefit, 2015 Single Person:?9,776 0 Qualified Adult:*?6,490 2 Qualified Children:*?3,099 Family of Four:?19,365 * Assumes Qualified Adult earns less than 100 per week Self Employed How long would your savings last? If you are self-employed how would your business survive? What would you have to cut back on? Could you afford to pay the bills?

3 What does WAGEPROTECTOR do? Wageprotector has been designed to provide you with a replacement income if you can t work and are suffering a loss of earnings as a result. The product is divided into two types of cover: Transitional Cover (for two years) This cover kicks in after the waiting (deferred) period and pays you a replacement income for 24 months if you are unable to do your own job. This gives you an opportunity to get back on your feet or prepare for an alternative job. After this initial period, depending on your circumstances, full Disability Cover may apply. Disability Cover This cover will apply if you are unable to return to any work due to significant illness or injury and suffer a loss of earnings as a result. You must pass a Functional Assessment Test to qualify for this cover. This is a simple, easy to understand set of physical and mental ability tests. Think about it... The money you earn from your job or business pays for almost everything you have. It pays for your home, your car, your children s care and education, the holidays you enjoy, the food you eat, your social life and much, much more. You probably don t think twice about protecting your home, your car and probably your healthcare with some type of insurance. So why wouldn t you protect your wages, upon which so much of your life depends?

4 Product Details You Decide: When you take out WAGEPROTECTOR you can tailor the policy to make sure that it provides you with the type of cover you need. These decisions can affect the price and the amount of cover that you take out. The amount of cover you choose will affect the price of your policy. You can cover up to 75% of your current earnings less Social Welfare entitlements or a maximum of?3, per week. The price you pay will depend on the deferred period you choose. The deferred period is the length of time that must pass after the onset of your illness or injury before you can start to receive benefits. The longer the deferred period the lower your premium will be. It is up to you to decide how soon you will require benefit payments. Your choice is to receive payments either 13 or 26 weeks after you are first out of work due to illness or injury. Type of cover: You can choose either a level benefit or to increase your benefit at 3% per annum. Level benefit is slightly less expensive than increasing benefit, but increasing benefit aims to protect your cover against inflation. Standard Benefits Tax relief on premiums: You can claim full tax relief on all premiums you pay (up to a maximum of 10% of your total earnings) at your marginal rate of tax. It is your responsibility to claim this tax relief. Contact Revenue for further details. Waiver of premium: You do not have to pay any premiums while you are being paid a benefit under your claim. Hospital Benefit: Your WageProtector benefit is paid if you have to stay in hospital for more than seven days during your deferred period. Your benefit is paid on a daily basis for up to 91 days during your deferred period. 5 Year Premium Guarantee: Your premiums are guaranteed to stay constant for the first 5 years of the plan, at which time we will review the premium and then at regular 5 yearly intervals, during the life of the policy. Following the review, the premium could stay the same, increase or decrease. If your premium needs to increase, you can keep it at the same level and reduce the amount of benefit instead. The premium may increase in the future if certain things change, such as inflation levels, claims costs, expenses, lapses, investment returns, taxes and levies. If you have selected the indexing premium option, your premium will increase by 3.5% per annum and your benefit by 3% per annum.

5 How much will WAGEPROTECTOR cost? Your premium will be determined by a number of factors such as your age, smoker status, your occupation, chosen benefits, deferred period and the type of cover you choose. Examples: Mick is a self-employed Domestic Tiler, currently earning?750 per week. He is 32 years old and a smoker. He has chosen to protect 75% of his earnings i.e.? per week, on a level benefit until the age of 60. He has selected a 13 week waiting (deferred) period and chooses not to automatically increase his premiums and benefits on an annual basis. Benefit amount:? per week State Illness Benefit 2015? 0 Gross premium?50.80 per month Mick pays?30.48 per month (after tax relied based on a tax rate of 40%). Brian is an employed Bricklayer currently earning?900 per week, is 30 years old and does not smoke. He has chosen to protect 50% of his earnings i.e.?450 per week until the age of 55. He has selected a 26 week waiting (deferred) period and chooses to automatically increase his premiums and benefits on an annual basis. Benefit amount:? per week State Illness Benefit 2015? 9, Gross premium?25.12 per month Brian pays?15.07 per month (after tax relied based on a tax rate of 40%). AND REMEMBER! While you are being paid a benefit under this policy, no premiums are due!

6 Other Information Age limits Minimum entry age: 19 next birthday Maximum entry age: 55 next birthday Ceasing age: 55, 60 or 65 Minimum term: 5 years (or 10 if going to age 65) Maximum term: To age 65 Premium limits Minimum premium: Maximum premium: Benefit limits Benefit limits: Maximum benefit:?12 per month,?36 per quarter,?72 half yearly or?120 per annum No maximum limit applies?5,200 per annum (or?100 per week) 75% of first?125,000 of annual earnings PLUS 33% of remaining annual salary (up to a maximum of?175,000) LESS State Illness Benefit and any other continuing income or benefits WageProtector is underwritten by Friends First Life Assurance Company Limited. A detailed product brochure and terms & conditions booklet are available. Full own occupation income protection cover is available under a different plan. The cost of full cover will typically be more expensive. For more information contact us on: Dublin: (01) Cork: (021) Waterford: (051) or us at financial.advice@arachas.ie This booklet only gives a brief description of the WageProtector plan. For more information or a copy of the policy conditions, please ask us. The information in this booklet is based on our understanding of current law and Revenue practice. WageProtector Income Protection Dublin Arachas, The Courtyard, Carmanhall Road, Sandyford Business Estate, Dublin 18. Tel: (01) Fax: (01) Cork Arachas, 9 East Gate Avenue, East Gate Business Park, Little Island, Cork. Tel: (021) Fax: (021) Waterford Arachas, Marine Point, Belview, Waterford. Tel: (051) Fax: (051) Arachas Corporate Brokers Limited trading as Arachas is regulated by the Central Bank of Ireland. Terms & conditions apply.