Executive Income Protection

Provides employees or directors with an income if they cannot work due to illness or injury, with premiums typically paid by the business as an employee benefit.

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Key benefits

Why people choose Executive Income Protection

Tax-efficient employee benefit
Helps replace income during long-term sickness
Premiums are usually paid by the company
Supports employee wellbeing

What's typically included

What Executive Income Protection covers

A regular income for a director or employee who is unable to work due to illness or injury
Premiums are typically paid by the business, often as an allowable business expense
Benefit payments are usually made to the business and then paid on to the employee via payroll
Can be arranged for a single director or extended across a wider group of key staff

Important to know

What's not usually covered

Every policy is different, so exact exclusions depend on the insurer and your individual circumstances. Common exclusions to be aware of include:

Cover is designed around illness and injury, not redundancy or unemployment
A deferred period applies before payments start, often aligned with company sick pay arrangements
Pre-existing or non-disclosed medical conditions may be excluded or affect the application
Benefit payments made through the business are usually subject to income tax and National Insurance via payroll

Common questions

Executive Income Protection FAQs

Quick answers to the things people ask us most. Can't find what you're looking for? Get in touch and we'll be happy to help.

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How is Executive Income Protection different from personal Income Protection?

It's arranged and paid for by the business rather than the individual, and the benefit is usually paid to the company first before being passed to the employee through payroll.

Are the premiums tax-deductible for the business?

Premiums are typically treated as an allowable business expense, though tax treatment depends on individual circumstances and it is worth confirming with your accountant.

Can Executive Income Protection be set up for just one director?

Yes, it can be arranged for a single director or extended to cover several key employees, depending on the needs of the business.

Is the income paid to the employee taxable?

Yes, because it is paid through the business and then via payroll, benefit payments are usually subject to income tax and National Insurance in the normal way.

Want to talk through Executive Income Protection?

Tell us what matters to you and one of our advisers will help you explore your options.

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