Otherwise known as Income Protection. PHI covers the policy holder unable to work long term due to due to an illness or an injury. PHI provides a monthly taxable income payable after a deferred period, usually 13 or 26 weeks (the period during which an employer may continue to pay a sick employee).
The benefit paid cannot be more than 75% of your net earnings including any state benefit paid to you while out of work. The maximum age to which you may have the cover in place is 65.
Every income earner should have some form of PHI cover. The state benefit is minimal should you fall ill or seriously injure yourself in an accident and is certainly it is not enough to maintain a reasonably normal lifestyle. However, those particularly at risk are the self-employed and shareholding directors as they are not covered by PRSI for illness or disability benefit.