Executive Income Protection

Protect your directors and key employees against the financial consequences of long-term illness or injury.

Executive Income Protection provides a regular monthly benefit if an insured employee is unable to work, helping maintain financial stability for both the individual and the business.

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EXECUTIVE INCOME protection

Executive Income Protection (sometimes called Directors' Income Protection) is a tax-efficient way for small and medium-sized businesses to protect key employees against the financial impact of long-term illness or injury. The policy can provide a regular monthly benefit to help replace lost income and support the business during their absence.

How Executive Income Protection works:

The business takes out an Executive Income Protection policy and pays the premiums.
A director or key employee is covered under the policy.
If the insured employee becomes unable to work due to illness or injury, a claim can be made.
Following a successful claim, the insurer pays a monthly benefit after the chosen deferred period.
Payments continue until the employee returns to work, the benefit period ends, or another policy limit is reached.

FREQUENTLY ASKED QUESTIONS

Who can be covered by Executive Income Protection?
Cover is typically available for company directors, business owners, and key employees whose absence could have a significant financial impact on the business.
How does Executive Income Protection work?
Executive Income Protection isn't just about your salary. The scheme can cover:

- Dividends
- Bonuses
- Benefits (P11D)
- Pension Contributions
- Employer NI

This doesn't just cover your income, it can protect your retirement plans too!
What makes it different to Personal Income Protection?
Personal Income Protection:
- Paid from your pocket
- Covers Salary only
- Lower limits

Executive Income Protection:
- Paid by your company
- Covers full earnings
- More flexible
How does it work with tax?
Premiums are usually paid by the business and often tax deductible (subject to rules).

Executive Income Protection can be significantly more cost-efficient than paying personally.

When you make a claim on a Executive Income Protection policy, the money comes into the business and is paid out to the employee via payroll. It is then taxed like normal income.
Does Executive Income Protection include rehabilitation support?
Many insurers offer rehabilitation services, including medical support, counselling, physiotherapy and vocational rehabilitation to help employees return to work sooner.