There is a number of different names for this cover, for example salary insurance or disability cover. Basically it is a replacement regular income should you become ill and unable to work.

Let's look at an example:
Say you are self-employed and earning €60,000p.a. In addition you have other income of €10,000.

Should you become ill and unable to work for 12 months, your gross income would drop:

* incl social welfare of €198 p.w.

Obviously, this is a fairly critical impact, especially if others are financially dependent upon you.

A self-employed person may not qualify for a State illness benefit.

Tax Relief
The good news is that premiums for this type of cover qualify for tax relief.

Example
Forty year old male, non-smoker. Cover to age of 55 of €750 pw, increasing at 5% p.a.

* cover would start to pay out after three months (no policy covers the first three months)