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Insurance basics in Ireland: what you need and what to skip

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Your income

Your employer must pay statutory sick pay for a few days a year. After that, Illness Benefit pays up to €254 a week in 2026 if you have enough PRSI contributions. Many employers pay more under their own sick pay scheme, so check your contract.

Income protection insurance pays up to about 75% of your income (less Illness Benefit) if you can’t work long term. The premiums get income tax relief at your highest rate, and the payments you get are taxed as income. Some employers include it as a staff benefit, so check before buying your own.

Health

The public health system covers hospital care, and a medical card or GP visit card helps if your income is low. About half the population has private health insurance. In Ireland it’s community rated: insurers can’t charge you more because of your health or a claim you’ve made.

  • You get 20% tax relief at source on premiums up to €1,000 for an adult and €500 for a child.
  • Lifetime Community Rating: if you first buy cover after age 34, you pay 2% more for each year you’re late, up to 70%.
The extra you pay for joining health insurance late Lifetime Community Rating loading, by the age you first take out cover
34 or under
None
Age 35
+2%
Age 40
+12%
Age 45
+22%
Age 50
+32%
Age 55
+42%
Age 60
+52%
Age 65
+62%
Age 70
+70%

2% for each year over 34, up to 70% from age 69. Years you were insured before can reduce it.

Plans differ a lot in price for similar cover. The Health Insurance Authority has a free tool to compare them, and you can switch insurer at renewal without new waiting periods for the cover you already had.

Life insurance and mortgage protection

Term life insurance pays out if you die during the term. If you take out a mortgage, lenders require mortgage protection insurance, which clears the mortgage if you die. Shop around: you don’t have to buy it from your lender.

A common starting point is enough to clear your debts and cover your family’s living costs for several years. Term cover for a fixed number of years is usually much cheaper than whole-of-life cover. Serious illness cover, which pays a lump sum if you’re diagnosed with certain illnesses, is optional and costs more.

Home, contents and car

Car insurance is a legal requirement, and your mortgage lender will require home insurance. If you rent, your landlord insures the building but not your things: contents insurance covers your belongings, and is usually cheap. Your no-claims bonus cuts your car insurance, so think twice before claiming for small damage.

What you can usually skip

  • Extended warranties and gadget insurance: an emergency fund does the same job, and you keep the money if nothing breaks. Under Irish consumer law, faulty goods can be repaired, replaced or refunded anyway.
  • Cover you already have: check what your job, bank account, credit card and existing policies include before buying more.
  • Low excesses: choosing a higher excess (what you pay towards a claim) lowers your premium, if you could pay it.

Paying less

  1. Shop around at renewal, rather than letting a policy roll over. Car and home insurance renewal notices must show last year’s premium, so you can see if yours has gone up.
  2. Tell the truth on applications: a claim can be refused if you didn’t mention something.
  3. Review your cover when life changes: a new job, partner, baby or home.

If you have a complaint an insurer won’t fix, the Financial Services and Pensions Ombudsman can look at it for free.

Frequently asked questions

What is Lifetime Community Rating?

A loading on health insurance for people who first take out cover after age 34: 2% more for each year over 34, up to 70%. Someone who first buys cover at 40 pays 12% more than someone who joined at 34 or younger.

Do I get tax relief on health insurance?

Yes. Your insurer takes 20% tax relief off the premium at source, on up to €1,000 for each adult and €500 for each child, so you don’t need to claim it.

Is mortgage protection insurance compulsory?

Lenders require it for most home loans, so the mortgage is cleared if you die. You don’t have to buy it from your lender: shop around, as other insurers are often cheaper.

Do I need income protection insurance?

If you couldn’t manage on Illness Benefit and your savings, it’s worth considering. It pays part of your income if you can’t work for a long time, and the premiums get income tax relief.

How do I complain about an insurer in Ireland?

Use the insurer’s own complaints process first. If you’re not happy with its final answer, you can go to the Financial Services and Pensions Ombudsman, which is free.

Money basics · Lesson 4 of 9

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