contact@businessprotectioninsurance.co.uk

0800 622 6406

Executive Income
Protection

Nobody knows what will happen in the future, but
as a business owner, you can take steps to financially
protect yourself and your key people from illness or
injury.

Talk to our qualified experts about executive
income protection today.

Find Out More

Executive Income Protection

Executive Income Protection is a tax-deductible expense and will result in lowering your corporation tax liability. Executive Income Protection pays a monthly benefit to the business if a director or key person is unable to work because of illness or injury.

What is Executive Income Protection?

Executive Income Protection is for business owners and key people within a company. If a business owner or key person were unable to work for a prolonged period of time, the income protection would pay out to help the company replace their income.

Paying for Income Protection via your business is a tax-efficient process as it’s not usually classed as a benefit in kind and is an allowable expense in company accounts. This means you can add a layer of financial protection via your business.

The financial protection can can up to 80% of your income and can include dividends and director’s loans. It can also cover national insurance and pension contributions too. Often personal policies won’t allow for this level of protection (typically around 60% is the norm).

Exec IP Cover

Executive Income Protection will cover your income if you can’t perform your job. Even if you could perform another job, the payment will typically be made as you are unable to complete your specific “own occupation”. When a pay out is required, the money will be paid to the business.

Our experienced advisers can talk to you about your options including deferred periods (when you want the protection policy to pay out), level of cover, short term or long term pay out periods, the length of the policy, index linking and premium type.

Business owners don’t usually have the luxury of “sick pay” which is why it’s even more important to protect against loss of income with an Executive Income Plan.

Send An Enquiry

    Exec IP Questions?

    Do you know that over 2 million people can’t work due to long term illness? Also, last year alone £231 was paid out by insurers due to musculoskeletal issues (often neck and back pain)?

    We regularly think about issues such as a critical illness (heart attack, stroke, cancer) or death as being the main concerns to a business owner, but an extended illness can be possible too. Protecting your business starts with protecting the people that built the business.

    Frequently Asked Questions - Exec IP

    What is Executive Income Protection (EIP)?

    Executive Income Protection (EIP) is a type of insurance policy that provides financial protection to a company’s key executives in the event of illness or injury, ensuring they continue to receive a portion of their income.

    Who is typically eligible for EIP?

    Typically, executives with high earning potential, such as CEOs, CFOs, COOs, and other senior-level executives, are eligible for EIP. The policy is designed to provide financial security to these individuals in the event of an unexpected event that prevents them from working.

    What are the benefits of EIP?

    The benefits of EIP include:

    • Providing financial security to executives in the event of illness or injury
    • Ensuring continued income replacement while the executive is unable to work
    • Allowing the executive to focus on recovery rather than worrying about their finances
    • Supporting business continuity by maintaining key personnel

    How does EIP work?

    EIP typically works by providing a percentage of the executive’s income (e.g., 50-75%) if they are unable to work due to illness or injury. The policy may also cover expenses such as medical bills, rehabilitation costs, and other related expenses.

    What are some common features of EIP policies?

    Common features of EIP policies include:

    • Income replacement benefits
    • Rehabilitation and recovery benefits
    • Return-to-work benefits
    • Disability and long-term care benefits
    • Employer-paid premiums (optional)

    Are there any limitations or exclusions to consider?

    Yes, EIP policies typically come with limitations and exclusions, such as:

    • Pre-existing conditions
    • Age limits
    • Specific illnesses or injuries
    • Limited coverage periods
    • Maximum benefit amounts

    How do I choose the right EIP policy for my company?

    To choose the right EIP policy, consider the following factors:

    • The executive’s age, health, and income level
    • The company’s budget and financial situation
    • The specific needs and requirements of the executive and the company
    • The terms and conditions of the policy, including limitations and exclusions

    Can I customize an EIP policy to meet my company's specific needs?

    Yes, many insurance providers offer customized EIP policies that can be tailored to meet the specific needs of your company. This may involve selecting specific coverage options, deductibles, and premium structures.

    How do I communicate the benefits of EIP to my executives?

    When communicating the benefits of EIP to your executives, consider highlighting the following:

    • The financial security provided by the policy
    • The peace of mind that comes with knowing their income is protected
    • The importance of maintaining key personnel for business continuity