Executive Income Protection explained for companies

Executive Income Protection is designed for companies that pay for a monthly income accident and sickness plan if an employee finds themselves unable to work because of an illness or injury.

Rather than the person buying the insurance for themselves, it is paid for by the company. This way, the plans can pay a regular benefit to the company that is passed on to the employee so that they don’t have to survive off any state benefits.

Some companies can offer benefits of taking out this sort of plan such as:

  • The initial pay-out can be up to £300,000 a year
  • Inflation protection – benefits increase as inflation does (however usually set to a max inflation of 5%)
  • The benefit is paid to the employer so they can either keep it to support the business or pay it to the employee through PAYE.
  • No P11D benefit for employee
  • The premiums are tax deductible

Executive Income Protection can cover up to 80% of an income which is a higher maximum that normally found with personal income protection insurance plans. Due to the flexibility, this type of insurance is more interesting for small businesses or limited companies as they can manage the support for the loss of a key staff member.

Due to the complexity of Executive Insurance income, only qualified advisors can arrange these policies and at Income Protection Expert, we can put you in touch with an advisor who can look at getting you the best premiums available. We work with companies like: Legal and General, Aviva, The Exeter and Zurich.

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