Executive Income Protection for Company Director's
Article published on 5th November 2007
General Income Protection Insurance
Income Protection or Income Replacement plans are insurance policies that will pay you a monthly benefit until your selected retirement age if you are unable to work due to long-term sickness or disability. These policies should not to be confused with the shorter term Accident, Sickness and Unemployment (ASU) plans, for more information on the differences between Income Protection and ASU please visit our Income Protection vs. ASU Guide.
Please follow this link to view our guide on Income Protection vs. ASU.
There are two types of Long-Term Income Protection plan available in the UK: Individual Income Protection and Executive Income Protection.
Individual Income Protection
Individual Income Protection is taken out by the life assured in his/her own name and is paid from their own net income. This means that in the event of a claim the individual receives the proceeds themselves and all benefits are paid free of tax.
Executive Income Protection | Director Income Protection
The alternative to an individual plan is an Executive Income Protection Plan (Life of Another). With Executive Income Cover, a company director can be insured by his company in a Life of Another Scheme. This has great benefits as the policy is not classed a Benefit in Kind (P11D Benefit) and can therefore be classed as a business expense. This means that the premiums are classed as a deductable expense.
Once a claim is made, the proceeds can paid out as salary to the Director and as this income will be taxable, you are allowed in most cases to take out cover based on 75% of income instead of the usual 50-65%.
Please note that in order to apply for Executive Income Protection there must be no more than 3 Company Director's.
To receive a quotation for Executive Income Protection, please either email our office on or alternatively call our freephone number: 0808 17 82 777.
In order to get an instant quote for our Individual Income Protection Online, please visit our Individual Income Protection Insurance Quote page, or please feel free to contact one of our friendly advisors for financial advice on Income Protection free on 0808 17 82 777.
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