COMPARE LIFE INSURANCE
Executive Income Protection can help company directors by protecting their earnings against the financial repercussions of not being able to work due to illness or injury.
PROTECTING BUSINESSES AGAINST SICK PAY COSTS WHEN AN EMPLOYEE CAN'T WORK
Executive Income Protection can help small business clients by protecting against the financial impact of their employee becoming ill or injured and unable to work.
The plan is designed to pay a monthly benefit to the business in the event of a valid claim. This can be used to fund the employees ongoing sick pay so they can meet their financial commitments whilst not leaving them to rely solely on their savings or state benefit.
Cover can include the employee’s earnings, dividends and P11D benefits. Additional cover can be arranged at an extra cost to cover employer pension contributions and National Insurance (NI) contributions.
WHAT WOULD HAPPEN IF YOUR INCOME STOPPED?
Executive Income Protection is designed for small and medium businesses to cover the cost of providing sick pay benefits to a key employee.
The policy is arranged and paid for by the employer (the policy owner) on the life of the employee (person insured). If the employee (person insured) becomes ill or injured and unable to work, the monthly benefit under a claim is paid to the employer (policy owner) who passes onto the employee via PAYE to fund ongoing sick pay. The employer can also cover other costs (for example their employer’s National Insurance and pension scheme contributions).
KEY FEATURES OF EXECUTIVE INCOME PROTECTION
The monthly benefit pays out to the employer and is passed on to the employee via PAYE to cover the cost of sick pay, so protecting the business finances.
Designed for small and medium businesses (SMEs).
Usually counts as a tax-deductible expense for the employer.
Covers up to 80% of the employee’s earnings plus the employer's National Insurance and pension contributions (maximum levels apply).
More tax efficient than personal Income Protection cover for the employee.