10-second summary: Many teachers in Ireland already have salary protection through union schemes such as INTO, ASTI or TUI. For those teachers the scheme is often a sensible option. Personal income protection usually only becomes relevant in specific situations, such as working outside the union system or where health disclosures affect eligibility.
If you’re a teacher in Ireland looking into income protection, the first question we usually ask isn’t about prices or policy features.
It’s a simpler one.
Have you checked what’s available through your union?
Many teachers already have access to salary protection through schemes linked to organisations such as INTO, ASTI or TUI. These schemes are familiar, easy to join and designed around the public sector teaching system.
For a lot of teachers, they work very well.
Personal income protection only tends to make sense in certain situations. This page explains when that might be the case.
Why union salary protection schemes work well for many teachers
Union salary protection schemes exist for a reason.
They are built around large groups of teachers in similar roles, which allows them to offer some advantages that can be difficult to replicate with an individual policy.
In many cases contributions are taken directly from salary before tax, which means tax relief is applied automatically.
Schemes may also include additional benefits such as serious illness cover or death-in-service protection.
For teachers in permanent public sector positions with no medical complications, that combination can be very attractive.
It’s also familiar.
Colleagues are often on the same scheme, and the structure is easy to understand.
For those reasons, many teachers never need to look beyond it.
When personal income protection may be worth considering
There are two situations where personal income protection sometimes becomes relevant for teachers.
The first is where a teacher works outside the typical public sector structure. This can include teachers in private schools, tutoring businesses, educational consultancies, or those working abroad for periods of time.
In those situations, the standard union schemes may not apply or may not reflect how income is actually earned.
The second situation arises where a teacher would like to join a union salary protection scheme, but cannot do so because of medical disclosures.
Group schemes can be strict when it comes to health questions. If someone has a history of illness, exclusions or postponements can sometimes apply.
Where that happens, a personal income protection policy may be the only realistic way of securing cover.
What happens if a claim lasts a long time
This is one of the least understood aspects of salary protection schemes, and it usually only becomes relevant if a claim lasts for several years.
Under many group salary protection arrangements, once a claim reaches around two years the insurer may assume that an early retirement or ill-health pension could be taken.
Because of that assumption, the benefit paid by the scheme may be reduced even if the pension is never actually taken.
A simple example makes it clearer.
If the salary protection benefit is €3,000 per month and the scheme assumes you could access an early pension of €1,200 per month, the insurer may reduce the payment to €1,800.
That reduction can apply whether or not you choose to draw the pension.
Personal income protection policies usually work differently. They generally only take account of income that is actually being received.
If the pension has not been taken, the insurer continues paying the full benefit.
Why this difference can matter for younger teachers
This issue tends to matter most for younger teachers.
Being unable to work for a long period does not necessarily mean someone sees themselves as finished with their career.
Many people are still in treatment, still recovering, or simply not ready to make a permanent decision about retirement.
An early or ill-health pension can be irreversible and usually means accepting a lower income for life.
For someone in their thirties or forties, that can feel far too final.
Some teachers prefer the flexibility of knowing that their income protection benefit will continue without assuming retirement until they decide what to do.
How we approach this with teachers
When a teacher contacts us about income protection, we do not start by producing quotes.
Instead we look at the bigger picture.
We try to understand where you work, whether a union scheme is available, and whether that scheme already provides the protection you need.
If the union option appears to be the best solution, we will say that.
If personal income protection could make sense, we will explain why and how to approach it properly.
The aim is not to sell a policy.
It is to make sure you do not apply in a way that limits your options or causes problems later.
Next step
If you are a teacher working outside the union system, or if you have been declined or restricted by a salary protection scheme because of health disclosures, it may be worth discussing your options before applying anywhere.
You can outline your situation using our income protection questionnaire and we will let you know whether personal cover is worth exploring.
No pressure. Just a clear steer based on your circumstances.
Written by Nick McGowan, QFA RPA APA
Nick is a qualified financial advisor and founder of Lion.ie, a multi-agency Irish life insurance and income protection brokerage based in Tullamore.
He has been helping people secure fair, transparent cover for more than 15 years and was named Protection Broker of the Year 2022.
If you would like straight answers before applying for income protection, you can learn more about Nick here.