Executive Income Protection consists of a regular income is paid to the employer if the life assured is unable to work due to a long term incapacity as a result of accident or illness. This allows the employer to insure the incomes of valued employees as well as offering the employees attractive company benefits which encourages them not to move on.  Executive Income Protection is perhaps the most desireable employee benefit that an employee could wish for.

If you read our statistics page you will see that 1.65 million people in the UK are currently off work for six months or more due to long-term illness.  Many of these people are still being paid by their employers yet they contribute nothing to the business while they are off work ill.  Executive Income Protection would ensure that the company’s resources were not used to take care of employee’s salaries during the time they were off work with a long term illness.

The benefit must be used to pay a salary to the employee while they are off work and is paid through the PAYE system.

What factors effect an Executive Income Protection Policy?

• The level of benefit - Many providers will have a limit on their monthly sum assured. Usually the maximum benfit will be 75% of the employee’s total income.
• Level or Increasing benefit - increasing benefit stays in line with inflation.
• Deferred periods are available for 4, 13, 26 and 52 weeks. The longer the deferred period the lower the premium.
• Term - the minimum term is usually 5 years whilst most policies are written to a maximum age of 65.
• Premiums can be either guaranteed or reviewable
• Smoker rates available.
• National Insurance premiums paid up to a limit - varies from provider to provider.