As part of our offering to the Association of Optometrists of Ireland, we provide Day One Income protection cover which will pay a replacement income if you are unable to work through illness, injury or disability.

What is Day One cover?

You may be familiar with the more common 'deferred period' Income Protection which will pay you after 4, 8 or 13 weeks has elapsed from the time you are first unable to work.

Day One cover allows you to claim from the very first day you can't work due to illness or injury. For the self employed or those who have no sick pay it gives great peace of mind that they will be able to keep their lifestyle even in the event of such an illness. You can claim for 1 day or if required all the way to age 60.

There are no occupation or smoking loadings.

It is staggering to see that 50% of all claimants are 45 years of age or under.

It is worth noting that infections accounted for 42% of all claims in 2009, that were paid under Day One cover but would not be covered on a typical 13 or 26 week deferred period because the illness
was shorter than the deferred period.

37% of claims were for musculoskeletal disorders. A fact that may surprise many is that only 6% of claims were related to cancers.

Female: 60% of claims happen under the age of 45.

Male: 37% of claims are under 45.

The pie chart shows analysis of the claims paid
in 2009 by gender.

* Examples of claims in 2009

I am a 30-year-old PAYE Vet earning €45,000. What cover should I have?

To fully protect your income you need to cover yourself for €580 per week escalating in line with inflation. It is best that you take a Day One cover of €580 a week which will cost you €63.80 per month.

*Prices as at 4/3/2010 based on a 30 year-year old male earning €45,000 non-smoker. NRA 60. Day One constant bond.

I am a 45-year-old male self employed pharmacist earning €70,000. I am already covered for €400 per week with Friends First. What should I do?

Firstly you need to keep your existing cover in place. You obviously took it out when you were younger so you're getting good value now as a result. It would be advisable to have additional cover from Day One for €400 per week which will cost you €90 per month. This will ensure you will have Day One cover in the event of you going out sick and then your deferred period will commence giving you total cover of €800 per week.

* Prices as at 4/3/2010 based on a 45 year-year old male earning €70,000 non-smoker. NRA 60. Day One constant bond.

I am a 38 year old self employed male Doctor and i would like to be covered for €1000 per week in case I cannot work due to illness. What will this cost me?

The premium for level cover is €130 per month.

Case Study 1: Income Protection Policy

A 47 year old who joined the Society on 1st April 1995, subscribing to one of DG Mutual's Immediate Constant policies, which allows a member to claim benefit from the very first day they are medically incapacitated. In the event of it being a long term claim, the amount he receives will never reduce up until he reaches the end of the policy on his 60th Birthday.

Unfortunately for him, in the April 1995 he submitted a claim for Nausea as he was currently feeling unwell. The policy he had with the Society started on the first day he was off. The member stated that they were suffering from fever and headaches, whilst feeling confused. After further diagnosis of his condition, Mr H was diagnosed with a sudden episode of Tuberculosis Meningitis. Despite treatment and improving slightly, he is currently still incapacitated from work as he suffers from left arm monoplegia and persisting visual loss.

Through subscribing with the Society, he covered himself in the event of illness and the Society has been meeting his claim for Sickness Benefit since April 2005 and has currently paid benefit of €207,000 so far. The Society's payments have enabled him to concentrate on his recovery and well being and not have to worry about any financial hardship at an already stressful and traumatic time.

As well as having benefit paid to him, DG Mutual also sets aside a capital account for each of its members in keeping with the Society's mutuality. His capital account accrues funds on a yearly basis and despite him claiming since 1995, no penalties are attached to the capital account regardless of whether a member claims once or on numerous occasions. Currently in his account the sum stands at €1,592.18 and this will continue to grow upwards until he reaches the age of 60 in 2023.

Case Study 2: Income Protection Policy

57 year old, Mrs M, joined the Society in February 1983. When taking out the policy with DG Mutual she decided to subscribe for sickness benefit and this was taken out of the Society's Immediate Constant policy which starts from the first day a member is medically incapacitated. The policy has also been set up until she reaches the age of 60. She has had claims with the Society since her acceptance and these have ranged from a slipped disc in her back as well as a fractured right wrist due to a skiing accident. At all times the Society paid sickness benefit from the first day she was incapacitated.

In April 2007 after a visit to her G.P, she was diagnosed with anxiety and depression. Unfortunately, symptoms for her incapacity included panic attacks, inability to work and the loss of 12lbs in body weight in 6 weeks. Despite ongoing treatment by her Consultant Psychiatrist and her G.P, the Society is of the opinion that the claim will go to expiry and we have been supporting her through her incapacity with her income protection policy and will continue to do so until April 2013. Currently the Society has paid €20,160.00 in benefit.

She also has a capital account with the Society. Currently this stands at €4,882.31. This will increase in line with the Society's interest and apportionment rates every year. Also when the policy finishes in April 2013 the Society will give the member a terminal bonus. This is currently set at 25% and is added to their fund.

Mr D is a 54 year old who joined the Society in 1982. At the time of joining, he decided to subscribe to the Society's Immediate Reducible Benefit from the first day of incapacity and chose the expiry date of the policy to be when he ascertained the age of 65. In February 08, he was diagnosed with Cervical Spondylosis which is a 'wear and tear' of the vertebrae and discs in the neck. It is a common cause of neck pain in older people and for a Dentist with the nature of their job and positioning throughout the day, can be extremely painful. Due to his Income Protection policy, DG Mutual paid his claim from the first day that he was unable to perform his occupation.

In the December 2008, he had recovered sufficiently for his treating G.P and Specialist to certify him fit to commence his occupation and he was relieved and extremely pleased to be able to return to work. However due to the nature of his incapacity there was a chance that there could be an immediate repeat of the initial incapacity. In order to help him at work, the Society working with one of its many contacts, supplied him with state of the art Ergonomics Equipment which would help him whilst he was at work. This included a specialist chair and neck rest to help him whilst he continued with his life long occupation.

He continues to be a member with the Society. Despite his incapacity, if he was unfortunate enough to have a relapse, he would be entitled to claim against his DG Mutual product again as no exclusions are placed after a claim. Also due to the Society being a Mutual Society, he also has the benefit of his capital account which accrues funds on a yearly basis. The amount in his capital account has no reflection on whether he has claimed or not and currently he has over €5000.00 in his account which is payable when the policy expires in 2020.