Executive Income Protection
Executive income protection is a tax-efficient policy that pays 80% of your monthly income to the business if you are unable to work due to sickness or ill health, until you return to work.
Arrange A Consultation For Executive Income Protection Cover
- Insure up to 80% of your annual salary
- Executive income protection can be taken out on both an employee's and their spouse’s salary
- It can be claimed as a qualifying business expense
- Benefits are paid monthly as a regular income from work
Client Reviews
Smooth process, easy to deal with and most importantly they saved me a lot of tax by switching my policy to one that could be paid for by the business.
Recently used them for relevant life and income protection. Professional and informative.
I set up shareholder protection policies for me and my business partners through Executive Life. They found us competitive quotes and the process was swift. I would highly recommend to other company directors.
Executive Life helped me find the best deal for my life insurance policy and also my income protection policy. It was very easy and the process took no time at all - I would highly recommend them!
Very happy with the service and process I went through. They explained how the income protection policy worked and how it would be tax efficient for me through my limited company.
Financial Protection For The Everyday
Relevant life insurance only pays out if you die or are critically ill, but what happens should you have an accident, or need to take time off due to sickness? This is where executive income protection comes in. Executive income protection is paid for by the business and is a qualifying business expense. Therefore, corporation tax relief is granted on the premiums. There is no benefit in kind charge either, which makes it a very tax-efficient type of business protection insurance.
At Executive Life, our team of insurance brokers will search for the best executive income protection insurance policies to protect your monthly income in the event of these incidents. This cover will also protect your business against any financial implications as a result of being off work.
What Is Executive Income Protection?
Executive income protection is a policy designed to cover your essential income should you not be able to work due to an accident, illness, or injury.
This insurance cover provides a monthly benefit equivalent to 80% of your usual income, which can either be paid to you as a salary, or left in the business to help in a time when income might be lower than usual.
Executive income protection has been designed with company owners in mind and has some unique features from regular income protection policies:
- It is common that a company owner would spread their income between themselves and a partner or spouse in order to maximise the income tax benefits. This is why executive income protection can ensure a joint level of income.
- Executive income protection policies are a qualifying business expense, resulting in corporation tax relief on the premiums and no benefit in kind tax.
- Policies cover up to 80% of total income and both salary and dividend are taken into consideration.
How Does Executive Income Protection Work For The Business?
With executive income protection, you can insure up to 80% of your annual salary so that, should you be signed off work or unable to work for a period of time, the executive income protection policy will pay an agreed monthly income.
Any income that is withdrawn as a salary will be taxed accordingly, however, this may be very similar to how employees in executive, director or owner roles are already paid. This means that you can still meet any personal or household payments, removing any stress or worries whilst you heal and recover.
When you’re looking at executive income protection insurance, speak to our team of dedicated insurance brokers here at Executive Life and we can help answer any business-related questions you may have about the cover. We can also use this information to find a policy that best works for you and your business.
Have Questions About Your Cover? Executive Income Protection Insurance Explained
Executive income protection insurance acts as an income replacement cover and is a policy which is set up, paid for and owned by the business. This insurance policy is typically used for company directors and owners of the business as in smaller companies, the inability to work could result in the company being unable to generate income.
Executive income protection can be claimed as a qualifying business expense, which means that businesses don’t need to pay for this through taxed income - you’ll receive corporation tax relief on the policy, which makes it very tax efficient. It can be a very cost-effective way to provide additional benefits to key employees within your business, and also protect your business from financial implications that may traditionally occur should they go off sick.
To give you an example, a 35-year-old director who earns £80,000 a year could find executive income protection cover from as little as £35 - affordable and essential cover, should it ever be needed.
Arrange Executive Income Protection Cover
Here at Executive Life, we’re far from your standard insurance broker company. Our team is made up of independent, regulated insurance and financial advisors, with the advantage of comparing the entire insurance market in order to guarantee you the lowest premium. We can compare policies from the biggest providers of executive income protection and, due to the volume of business we write with these providers, we have the ability to request preferential rates.
We understand that, as a business owner, you want to keep things as cost-effective and straightforward as possible and we believe in keeping business insurance a simple process. If you’re looking for executive income protection cover, before committing to a plan, contact us at Executive Life to see what further advice we can offer.
Other Broker Services
Key Man Insurance Cover
A key person policy pays the business a lump sum when a key person who works for that business suffers a specified critical illness or dies. It's a simple term assurance policy that protects the business against losing a key person.
Private Business Health Insurance
Private business health insurance can be paid for by your company as an expense and can also be extended to include your family. Corporation tax relief is available, however, a benefit in kind tax will be due on the value of the business health insurance premiums. This is usually more tax efficient than paying for the premiums personally.
Executive Income Protection
Executive income protection is a tax-efficient policy that pays 80% of your monthly income to the business if you are unable to work due to sickness or ill health, until you return to work.
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