Executive Income Protection UK

Protect Directors and Key Employees' Earnings

Business-owned income protection designed for limited company directors and key staff. Compare options with expert, no-obligation advice.

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Comparing policies from the UK's leading insurers

  • Aviva
  • Legal & General
  • Holloway Friendly
  • LV=
  • Royal London
  • Zurich
  • MetLife
  • Exeter

Business Owned

Policy arranged and paid by the company

Flexible

Deferred periods and benefit terms to suit your setup

Protection

Support income continuity during long-term absence

What is executive income protection?

Executive income protection is a business protection policy that helps protect earnings when a director or key employee cannot work due to illness or injury.

It can support salary continuation planning and reduce financial stress for both the individual and the company during long-term absence.

  • Designed for limited companies and incorporated businesses
  • Covers selected directors and key employees
  • Deferred period can align with sick pay policy
  • Options for short-term or longer claim durations
  • Can complement key person and relevant life cover
  • Tailored underwriting based on role and earnings structure
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Executive income protection illustration

Who Needs It

Who Should Consider Executive Cover?

Executive income protection is built for businesses where the impact of incapacity is significant.

Company directors

Protect director earnings where household and business cash flow rely on continued work.

Key employees

Support critical team members whose absence could materially affect operations or revenue.

Growing SMEs

Add structured protection as part of a broader benefits and risk-management strategy.

How It Works

Setting Up Executive Income Protection

A few key policy decisions determine how effective your cover is.

Deferred Period

Set when claims begin to match business sick-pay commitments and cash reserves.

Tip: Align deferment with existing employment terms.

Benefit Level

Benefit limits are based on earnings structure and insurer rules. Directors with mixed salary/dividend income need tailored advice.

Tip: Keep remuneration records ready when applying.

Tax and Structuring

Policy setup should reflect accounting and payroll strategy. Tax handling depends on legislation and specific arrangements.

  • Premiums: may be deductible in some setups
  • Benefits: may be taxable depending on payment route
  • Best practice: take professional tax advice before placing cover

Compare Options

Executive vs Personal Income Protection

Both protect income, but ownership and tax treatment differ.

Executive Income Protection

Policy owner:
Business
Premium payer:
Business
Designed for:
Directors and key employees
Best for:
Integrated company protection planning

Personal Income Protection

Policy owner:
Individual
Premium payer:
Individual
Designed for:
Employees or self-employed individuals
Best for:
Direct personal income replacement

Premium Drivers

What Affects Executive Policy Cost?

Role and Occupation

Insurers price based on duties, risk profile, and medical evidence requirements.

Benefit Amount

Higher benefit levels and longer payment terms increase premiums.

Deferred Period

Longer waiting periods before claim payment usually lower premiums.

Health and Age

Medical history and age materially influence underwriting and pricing.

Simple Process

How to Arrange Executive Cover

We help structure cover around your company and remuneration model.

1

Book a Callback

Tell us your business setup and role profile.

2

Scope Requirements

We align deferred periods, benefits, and policy term.

3

Compare Market Options

Review insurer options with transparent recommendations.

4

Implement Cover

Set up your policy and keep your key people protected.

FAQ

Executive Income Protection FAQs

Common questions for directors and key employee protection

What is executive income protection?
Executive income protection is a business-owned policy designed to protect the earnings of directors or key employees if long-term illness or injury stops them working. It is arranged by the company to help maintain income during incapacity.
Who is executive income protection suitable for?
It is commonly used by limited company directors, senior staff, and key revenue-generating employees, but it can also be extended to cover wider staff members as part of a company benefits package. It can be particularly valuable where the business depends heavily on one or two people, or where employers want to offer income protection as a workplace benefit to attract and retain talent.
How is executive income protection different from personal income protection?
Personal income protection is owned and paid for personally. Executive income protection is arranged and paid by the business for an employee or director, often as part of employee benefits or business protection planning.
How much can be covered?
Cover levels vary by insurer and employment structure, but policies are designed to protect a significant proportion of earnings. The exact limit depends on salary/dividends structure, underwriting terms, and insurer rules.
When do payments start?
Payments start after the deferred period, which can be set to align with company sick pay arrangements. Common deferred periods include 4, 8, 13, 26, or 52 weeks.
How long can executive income protection pay out for?
Depending on the policy, claims can pay for a fixed term (for example 1, 2, or 5 years) or potentially to selected retirement ages, subject to policy terms and claim conditions.
Are executive income protection premiums tax deductible?
Tax treatment depends on business structure and HMRC rules, which can change. In many cases premiums may be treated as an allowable business expense, but professional tax advice is essential.
Are claim payments taxable?
Claim payment tax treatment varies depending on how benefits are paid and policy setup. Professional accounting and tax advice should always be taken before arranging cover.
Can self-employed contractors get executive income protection?
If you operate through a limited company, executive-style cover may be available. Sole traders usually use personal income protection instead.
Is executive income protection worth it for small companies?
For many SMEs, yes. A prolonged illness affecting a director or key staff member can impact both personal income and business performance. Executive income protection can provide a financial buffer while recovery takes place.
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