Executive Income Protection
Get tailored Executive Income Protection through Jensten Insurance Brokers. This cover has been set up to give the opportunity of directors and their employees to replace their income if they are signed off work due to an accident or sickness.
What is Executive Income Protection?
This cover allows you to replace your income if you’re signed off work due to an accident or sickness. Owned and paid for by a limited company, should a claim arise, the benefit is paid to the company, treated as revenue, and taxed accordingly. It’s then up to the director to draw that income however they see fit, most likely as a continuation of PAYE salary and dividends.
What Are Some Regulations involved with Executive Income Protection?
When thinking about taking out Executive Income Protection, there are things to know and consider
- You can have up to 85% of your income covered
- You can include national insurance contributions and any personal pension contributions you make
- You can offset this premium via corporation tax. However, to withdraw this benefit from your limited company, it is treated as PAYE
- You can cover PAYE & Dividends; you can also use your partner’s dividend income to increase coverage
- You would need to do a full application with the insurer. Underwriting is more stringent for this cover
How Much Does Executive Income Protection Cost?
Several factors can affect the cost of Executive Income Protection, which is why premiums are subject to underwriting and may change based on answers to health and lifestyle questions. We’d know ahead of incepting cover if costs were to change.
Get in touch for a customised quotation fit for your budget and requirements
Why choose Jensten Insurance Brokers?
Our Employee Benefits industry specialists based in the UK are here to assist you if you are still not sure about this type of insurance. We can provide tailored recommendations to your company.
Why use Jensten
Dedicated
A dedicated team to support you through the employee benefits process
Trusted
Trusted by thousands of businesses like yours
Flexibility
Tailored employee benefits packages to the needs of your business
Talk to the experts
Our team of UK-based insurance experts are here to help, Monday – Friday, 9am -5pm.
- Call our team
- 07771 609 996
Online
Contact us on our website whenever suits you
Phone
Call our insurance experts during office hours (calls are charged at a local rate)
FAQs
Find answers to common insurance questions
What our clients say...
Need Executive Income Protection?
Find out how our advisors support people and businesses like yours
Executive Income Protection
To help you learn more about Executive Income Protection, here is our frequently asked questions. We hope they are of use, but if you’d like some independent advice from our employee benefits consultants, please call us and a member of our experienced team will be happy to help.
The insurer would require a sick note from you and to see your last 3 months’ bank statements to prove your earnings.
This policy can include indexation, which means it can combat the effects of inflation. However, you would need to prove your earnings at the point of claim.
You have a choice of payment periods of either 1 year, 2 years, or full term.
For most pre-existing conditions, the insurer will either increase your premium or add an exclusion. However, we can pin-point who would be the best insurer for you.
Yes, when you withdraw this income via your limited company, it will be treated as PAYE.
We are always on hand and can review the market to see what the best solution is for you.
The insurer can either insure you for the maximum that you can obtain, or we can base it on the amount of cover you may need.
The policy can cover you until your state retirement age or your anticipated retirement age.
Yes, government benefits/sick pay will not interfere with this cover.
- Yes, providing your cover is based on an “own occupation” definition. This means that if you cannot work your “own occupation,” the cover will be paid out. You could, in theory, then work another occupation whilst receiving your income protection benefit, as long as you do not receive more income than what you are insured for set by the insurer’s rules. For example, let’s say you are a surgeon, and your monthly benefit is £4,000 per month. You could then work another occupation, and it could pay you £2,500 per month. Your income protection benefit would then be reduced to £1,500 per month.
No, you do not pay for your cover whilst you claim.
No, your claim will not affect your premium, provided that your policy is set up on a guaranteed basis.
Currently, muscular and mental health conditions are the most common claims on this policy. However, these conditions can range from minor all the way to serious health diagnoses.
