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EXECUTIVE
 
INCOME PROTECTION

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.

Doctor Holding Patient's Hand

ARE YOU A COMPANY DIRECTOR WITH NO SICK PAY

Nobody likes to think that something bad will happen to them. However close to a million people find themselves out of work in the UK every year due to illness or injury.

What financial problems would occur in the business if you had to take time off work due to a serious illness or injury?

Would the company still pay you a salary? If so, how long would they be willing to pay it for?

ARE YOU A COMPANY DIRECTOR THAT HAS PERSONAL INCOME PROTECTION?

Personal income protection is a great financial product which can protect one's lifestyle against illness or injury.

The problem with personal critical illness cover is that most policies only pay out around 60% of one's earnings.

The second issue with personal income protection is that it can't be put through the business as a tax deductible-business expense. If you'd like advice on upgrading your policy contact me. 

EXECUTIVE INCOME PROTECTION

Executive Income Protection can help small businesses by protecting against the financial consequences that illness or injury could have on one of their directors.

Cover can include the employee’s earnings, dividends and P11D benefits. Additional cover can be arranged at an additional cost to cover employer pension contributions and National Insurance (NI) contributions

An Executive Income Protection plan would pay the monthly benefit to the business in the event of a valid claim, the business can then use this benefit to fund the employee’s ongoing sick pay if they are unable to work as a result of becoming incapacitated due to illness or injury. This can help the employee to meet their financial commitments whilst not leaving them to rely solely on their savings or state benefits.

Executive income protection usually covers up to 80% of one's earnings, monthly premiums are normally treated as a tax deductible business expense.