Executive Income Protection

Income Protection – Life Insurance –
Serious Illness Insurance – Mortgage Protection

What is Executive Income Protection?


The Executive Income Protection policy is different to a personal Income Protection policy in that the policy is owned by the business the employee works for, rather than the individual who is actually insured. It is a particularly attractive benefit to offer an employee, as it can offer them a financial safety-net, in the event of them being unable to work and it does not count as a P11D benefit, so they have no tax liability from it.

Due to the additional flexibility and tax efficiency of Executive Income Protection it can be a very attractive alternative to personal income protection cover for small businesses and one person limited companies. Monthly premiums are an allowable expense against company profits if the policy is set up correctly, so it can be very tax efficient for the business too.

Our Providers

Aegon pays a monthly benefit and is paid through the PAYE (Pay As You Earn) System. Includes Guaranteed or Reviewable Plans and Insurability Options

Pays up to 80% of an individual’s gross income. With over 320 years of history and experience, they are a highly trusted insurer offering Varied Protection Plans to over 31 Million customers around the world

Phoenix Life pays up to 70% of your normal salary including when you are physically unable to work. Offers Guaranteed and Reviewable Plans as well as a Deferred period, playing out through the PAYE system

Royal London covering up to 80% of an employee’s income, through Guaranteed and Reviewable premiums. Over 150 years of experience makes them a trusted insurer.

Unum pays a monthly benefit when employees are unable to work. Covering up to 80% on earnings and offered with Fixed % Payments on the premiums.

Why Choose Executive Income Protection?

Executive Income Protection pays a monthly benefit to your business if the insured person becomes sick or unable to work and therefore loses taxable earned income. This means you can insure the taxable earned income of employees.

guaranteed or reviewable plans

Premiums are available as either guaranteed or reviewable. Guaranteed premiums will only change the cost of the cover if you change the number of benefits. For example, if you chose the indexation option, the premium will change as RPI increases. A reviewable premium cannot guarantee the cost of cover as the cost is based on a number of factors over the term of the plan that assumptions are made from with the information provided when you take out the plan. Reviews take place every 5 years on the anniversary of the benefits start date in question. If there is a change to these assumptions, the premium rates can change and there is no limit to the amount this could change by but any increases will be fair and reasonable. If the premium is going to increase, we will write to you and explain the changes 2 months before any changes take place. If you are considering one of our insurers' Executive Income Protection plans, contact us at income protection and we can put you in touch with a qualified adviser to help discuss your options and get you the best available premiums.

Deferred Period

When making a claim, you should do so in writing or by phone at the soonest possible convenience. Premiums should be continued to be paid until your claim is accepted, however once accepted you do not need to pay premiums while we pay the benefit amount. You will be required to pay the premiums again if the insured person begins work again, even if they are only working part-time or in a different role. The cover will only remain active if the insured person is a permanent resident in the ‘home countries’. These are the United Kingdom, the Channel Islands and the Isle of Man. If the insured person travels or lives outside of the ‘home countries’ for 13 continuous weeks in a 12-month period. If the insured person travels or lives temporarily in any one or more of the ‘designated countries’, the 13-week period will be extended to 26 weeks during any 12-month period.

Guaranteed Insurability Options

With the plan, you get guaranteed insurability options which are: once cover has started but you need to increase the benefit amount due to a change in circumstances, you might be able to do so without the insured person having to disclose any extra information about their current health. These options are only available if the insured person is on a Standard Premium and policy terms. Our insurers provide a policy schedule that shows what benefits have been chosen, how much the benefits are for, the premium for each benefit and if there are any exclusions or reasons why the policy will not pay out.

PAYE System

All benefits are paid through the PAYE (Pay as You Earn) system. The maximum benefits are calculated on: 75% of the employee’s taxable income before incapacity (maximum of £150,000 a year), plus the previous 12 months' contribution to the insured person's pension by the company, plus the employer's National Insurance contributions. The combined overall limit for pension and national insurance contributions is £30,000 and the total cover limit is £160,000.

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