What is Executive Income Protection?
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.
Key Features
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.
