Executive Income Protection
Company-paid income protection for directors and key employees, a tax-efficient way to protect your highest earners.
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Extensive Lender Panel
Based in Uxbridge
UK Wide Coverage
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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
Frequently Asked Questions
Is executive income protection a P11D benefit?
Yes, it is a benefit in kind and must be reported on the employee's P11D. However, the overall tax efficiency (corporation tax relief on premiums) usually makes it more cost-effective than the individual paying for their own policy.
Can it cover dividends as well as salary?
Yes. Executive income protection can be structured to cover total remuneration including salary, dividends and pension contributions, which is essential for director-shareholders who take a low salary and higher dividends.
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Speak with one of our expert advisers today, initial consultation at our expense, and without obligation.