How much do you earn?Your income is a key factor in determining how much you would pay for income protection. If you earn more, you pay more; if you earn less,
you pay less; and if your income is close to the average income in
Ireland (which is approximately €34,000), then we’ll charge an average
amount.
We use industry standard rates of interest to calculate what we call the cost of cover (the premium). These rates are set by law and known as
statutory solvency margins or SMRs. They vary depending on the type of
policy chosen and age at commencement but are typically between 4-6%.
What is your age?
Age is a factor in determining premiums. The older you are when you purchase your income protection policy, the higher your premiums will
be.
The reason for this is that insurance companies base their pricing on statistics collected from previous claims experience. By using this
data they can determine how much risk they face by offering different
levels of cover at different ages and then set appropriate prices
accordingly.
