Executive Income Protection can help small business clients by protecting against the financial impact of their employee's incapacity on the business.
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.
With so many options to consider, it can seem very confusing. So, to help you out we've answered some of your most common questions. For more specific advice about the options available for your circumstances, why not get in-touch with one of our friendly advisors.
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.
– Designed for small and medium businesses (SMEs).
– Covers up to 80% of the employee’s earnings plus the employer's National Insurance and pension contributions (maximum levels apply).
– Usually counts as a tax-deductible expense for the employer.
– More tax-efficient than personal Income Protection cover for the employee.
To find out more about mortgages, personal insurance, business insurance and protection or to discuss the options available for your circumstances, contact our team of advisors
