Executive income protection pays your business a monthly benefit amount if, due to accident or sickness, the life assured becomes unable to work and so loses earnings. This allows you to insure the income of valued employees.
Our consultants can talk to you about the different ranges of policies available and how this policy differs from some of the other protection policies available.
No, an employer must use the benefit to provide a monthly benefit if an employee is unable to work because of illness or injury. The benefit is paid to the employer to pass on to the employee through PAYE. Some plans may have the option available for the employer to cover some of the other ongoing employment costs.
With an Executive Income policy you can choose to insure a select number of employees whereas with Group Income Protection you need to offer the benefit to a category of staff, for example, all senior managers.
The benefit is paid to the employer, but they must use it to pay the assured employee through PAYE.
It may include salary and dividends.
With Executive Income Protection you may be able to cover up to 80% of gross salary.
It will depend on the option chosen. Some pay out to a limited period of say 2, 3 or 5 years whilst others pay out to retirement.