Executive Income Protection

Executive income protection is a company-paid policy that provides a regular income to a director or key employee if they're unable to work due to illness or injury. Because the company pays the premiums (which are a deductible business expense), it's one of the most tax-efficient ways to provide long-term sickness cover for your most important people.

How It Differs from Personal Income Protection

• The company owns the policy and pays the premiums
• Premiums are a tax-deductible business expense (corporation tax relief)
• Benefits are paid to the company, which continues to pay the employee's salary
• Can cover salary, dividends, pension contributions and National Insurance
• Ideal for director-shareholders who draw a mix of salary and dividends

Key Benefits

• Corporation tax relief on premiums
• Covers the full remuneration package, not just salary
• Retains key employees with a valuable benefit
• Protects business cash flow if a director can't work