Executive Income Protection
A business-funded insurance policy that replaces an individual's income if they cannot work due to illness or injury.
Safeguarding Key Talent and Business Continuity
Executive Income Protection is a business insurance policy designed to provide financial support to directors and key employees who are unable to work due to illness or injury. Unlike standard income protection, EIP covers a broader range of income sources and is typically arranged and paid for by the employer.
- Comprehensive Income Coverage
- Employer-Funded
- Tax Efficiency
How can we help you?
Contact us at Templar Mortgages - 0121 453 4244.
Tax Efficiency: Premiums are often tax-deductible for the employer, and benefits are paid through PAYE, potentially reducing tax liabilities.
Policy Ownership: The employer arranges and owns the policy, covering the employee's income.
Claim Process: If the employee is unable to work due to illness or injury, the employer claims the monthly benefit from the insurer.
Benefit Distribution: The employer passes the benefit to the employee via PAYE, maintaining their income during recovery.
Coverage Options: Policies can be tailored to include additional benefits such as employer pension contributions and National Insurance.
FAQ: Executive Income Protection
Who is eligible for Executive Income Protection?
Typically, directors and key employees of UK-based limited companies are eligible.
What income sources are covered?
The policy can cover salary, dividends, P11D benefits, and, in some cases, employer pension and National Insurance contributions.
How long does the coverage last?
Coverage can continue until the employee reaches retirement age or returns to work, depending on the policy terms.
Is there a maximum payout limit?
Yes, some policies have a maximum annual benefit, such as £300,000 per year.
Are premiums tax-deductible?
In many cases, premiums are tax-deductible for the employer, and benefits paid to the employee are processed through PAYE.
Can the policy be customised?
Yes, policies can be tailored to include additional benefits like critical illness cover or rehabilitation services.
Is there a cash value to the policy?
No, Executive Income Protection policies do not accumulate cash value.
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