Executive income protection is an income protection policy paid for by your limited company. If you’re unable to work due to illness or injury, the monthly benefit is paid to your company — which then passes it on to you as a salary or employer contribution.

It’s the business-owner’s equivalent of personal income protection — and because the premiums are paid by the company, it’s often a more tax-efficient way to protect your income.

As a limited company director, if you’re unable to work, your personal income stops — but your business overheads don’t. You can’t rely on Statutory Sick Pay (it’s just £116.75 per week), and you may have little or no emergency fund to fall back on.

Executive income protection ensures that even if illness or injury stops you from working, money continues to flow — keeping both your household and your business afloat.

• Premiums are paid by the company — typically an allowable business expense

• Can cover up to 80% of your total remuneration (salary, dividends, and employer pension contributions)

• Benefit paid to the company, then on to you as salary

• Covers short-term and long-term illness and injury

• Can run until your chosen retirement age

Personal income protection is owned by you and paid for from your personal income (post-tax). Executive income protection is owned and paid for by your company — making it far more cost-effective for most limited company directors. We can help you compare both and decide which is right for your situation.

📝 Tax treatment depends on individual circumstances. We recommend discussing with your accountant alongside your insurance adviser.

We’ll help you find the right executive income protection policy — free, no-obligation advice for business owners and company directors.