Other PHI:what happens to state benefits? does it go? combine? is it taxed?

TrotterDel

Registered User
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67
Hi all,

I have PHI cover linked to my pension 20k cost €500 per year deferred period six months.

My question is when it kicks in what happens to the benifit I would receive from the state i.e does it go? or is it combined and taxed?

Am I doing myself any favours by having this cover or am i wasting my money.

Any advise would be appreciated.

thanks,
TD.
 
The PHI would pay benefits of 20K per year in addition to social welfare benefits.

It's only a waist of money if you do not nee the peace of mind that your income is protected in the event of accident or sickness plus you would not be able to get cover as cheep again.
 
ok but do i eliminate myself from being able to claim sick benefit from the state because i have phi (i pay full prsi) if not are both claims combined and taxed or am i taxed on the phi benefit only.
 
You will get your PHI benefit and whatever entitlement you are entitled to by way of whatever PRSI you pay. I am in this situation and was paid my PHI by the pension provider after the deferral period plus illness benefit but this only lasts for 2 years, you then have to apply for invaliidty etc.
I constantly thank whoever that i had PHI on my pension, it has proven to be a lifesaver for me. Normaly PHI+Social welfare can only cover to a max of 75% of your salary. Hopefully you will never need it buts its so much better than critical illness cover etc IMHO.
It is all taxable unfortunately and you must notify revenue of illness benefit payment etc
As far as i know you get a tax allowance for the PHI cover you pay also
Pray you never need it but in my case I did and was grateful i had the cover

Hope this helps
 
Thanks gimp for the good advise I decided to stick with it after reading your post.


Thanks again,
TD.
 
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