Income Protection for Sales Professionals

Income Protection for Sales Professionals

Hey, you!

Yes, you, the sales professional dripping in designer clobber suits with a taste for the finer things in life.

I know you’re addicted to the thrill of the sale but have you considered what would happen if you were suddenly struck down by an illness or injury?

No more fancy dinners, no more jet-setting to exotic locations, no more skinny single-origin mocha latte wakka doo-dahs from that overpriced coffee shop on the corner.

Scary thought, yeah?

Well, fear not my friend, because I’m here to tell you about a little thing called income protection.

It’s an insurance policy for your wallet, ready to swoop in and provide replacement readies if you’re unable to work.

So, go on, uncork that €80 bottle of wine and let’s talk about securing your financial future

Why Does a Salesperson Even Need Income Protection?

That’s a fair question and a good jumping-off point.

Why should you spend your hard-earned on this instead of the latest must-have??

Well, there are several reasons.

Firstly, you thrive in a high-stress environment that can lead to mental burnout or other health issues.

If you fall ill and can’t work for an extended period, your income protection policy can help to replace lost income and provide financial stability during this difficult time for everyone who knows you (they know how much your job means to you so they’ll give you a wide berth) 😆

Second, you probably have OTE (on-target earnings) or may rely on bonuses and other performance-based incentives to supplement your base salary. If you can’t work, you can’t hit your target which could have a significant impact on your overall income.

Thirdly, although your employer pays you well (if you perform), employers in this space are not the most generous when it comes to sorting you out financially if you can’t work.

Do you know how much sick pay you are entitled to in Ireland – three days!

Finally, if you work in sales, you may have to travel extensively or work long hours, both of which can increase the risk of accidents or injuries.

But I’ve done VERY WELL and have put a lot away, do I still need income protection?

Fair play!

Look, if you have significant savings that you can fall back on – I’m thinking two years net income – then maybe your need isn’t so great but let me hit you with this.

Also if your partner is working, your risk reduces.

However, I have seen heartbreaking cases where the working partner has to reduce their working hours to become a carer for the person who has lost their income.

So the family goes from two high earners to a single-income family on a reduced single wage.

At least if the person who fell ill had the foresight to buy income protection, they would remain a two-income family making life a lot easier.

Will a Salesperson Face Any Difficulties Getting Salary Protection?

You may face some challenges getting income protection due to the nature of your work and income structure.

Commission-based income:

Sales professionals often earn a significant portion of their income through commissions, bonuses, or other performance-based incentives. This type of income can be more difficult to insure, as it can be harder to predict and can vary from month to month.

Air travel or road miles:

Sales professionals may rack up air or road miles, which can increase the risk of accidents or injuries. Insurance providers may view these factors as higher risk, and may move you from a Class 1 risk to a Class 2.

Pre-existing medical conditions:

If you have a pre-existing medical condition or a history of illness, you may find it more difficult to obtain income protection or may have to pay higher premiums.

Age:

As with any type of insurance, age can be a factor in determining eligibility and premiums for income protection. The maximum age you can take out income protection is 59.

Self-employment

If you are set up as a sole trader, you may have to provide additional documentation or financial information to obtain income protection, as your income may be more difficult to verify. Sole traders can insure up to 75% of their income but please note that the insurer will only insure this portion of your profits (not your drawings)

As you can see, there are a few landmines to avoid. Working with the best broker in Ireland (👋) will make sure you don’t step on one.

Are There Any Specific Income Protection Policies for Salespeople?

If your income is unpredictable, you should consider buying a policy with a Confirmed Income Option.

A confirmed what-now?

The income protection confirmed income option lets you prove your income in advance, rather than having to establish your income at the time of a claim.

Under a confirmed income option, you and the insurer agree on a predetermined level of income, which is then used to calculate the amount of benefit payable in the event of a claim.

This can be particularly useful for salespeople, who may have fluctuating incomes or may find it difficult to prove their income at the time of a claim.

In order to qualify for a confirmed income option, you will need to provide financial records to support your income, such as tax returns or profit and loss statements.

Overall, a confirmed income option can provide greater certainty and peace of mind as you know in advance what level of benefit they will receive in the event of a claim, rather than hoping you’re earning enough to support a future claim.

What Other Benefits Are Available on Income Protection for Sales Professionals?

In addition to providing a regular income in the event of an illness, injury or disability, income protection policies in Ireland may also offer a range of other benefits, depending on the policy and the insurance provider.

Here are some examples of other benefits that may be available on income protection policies in Ireland:

Rehabilitation services:

Some income protection policies may offer access to rehabilitation services such as physiotherapy, occupational therapy, or counselling, which can help you to recover from your illness or injury more quickly.

Return-to-work assistance:

Some income protection policies may offer support and assistance to help you return to work after an illness or injury, such as workplace modifications, retraining, or counselling.

Waiver of premiums:

The insurer will waive the premiums for the policy while you are out on a claim, helping to reduce the financial burden of paying for the policy while you are unable to work.

Second medical opinion:

A second opinion can provide you with additional information and perspectives, which can help you make a more informed decision about your health care. Whole your primary carer may advise surgery, a second opinion could avoid surgery and focus on other treatments.

Some providers also offer a free digital GP and mental health counselling as part of their package.

How Much is Income Protection for Sales Professionals?

It depends on

Age
Income to insure
Deferred period
How long do you need cover?
Smoker / Non
Health issues
Occupation details (travel etc)

If you complete this questionnaire, I can take and look and email you some recommendations and indicative quotes.

Over to you

So there you have it, my sales-savvy friend.

Income protection may not be as thrilling as closing a big deal or snagging that corner office, but it’s a pretty good backup plan for those moments when the shit hits the fan.

Thanks for reading

Nick

PS: Here’s the income protection questionnaire again (just in case you want a quote)

PPS: And here’s the Income Protection FAQ you need to read.

Editor’s note: We first published this blog in May 2023.