What Is Executive Income Protection - Replace Your Income During Illness

Understanding what is executive income protection is important when planning your financial protection. Income protection insurance pays you a regular monthly income if you're unable to work due to illness or injury.

Key Points

• Ensures bills are covered when Statutory Sick Pay isn't enough
• Typically covers 50-70% of your gross salary
• Payments continue until you recover, retire, or the policy ends
• Can cover almost any illness or injury that prevents work

Who Is This For?

This information is particularly relevant if you are a company director or high earner whose sick pay would not replace enough of your income. If losing that income would affect your ability to pay bills, rent, or mortgage, executive income protection is the decision to evaluate — not a thin definition page.

Executive vs personal income protection

Personal income protection is usually owned and paid for by you as an individual. Benefit is paid to you and is typically based on a percentage of your personal earnings. Executive (or company-paid) income protection is arranged through the limited company: premiums are often an allowable business expense, and the benefit structure is designed around directors' remuneration rather than PAYE salary alone.

The useful comparison is not brand — it is who pays the premium, how benefit is calculated (salary, dividends, or total relevant earnings), tax treatment of the payout, and whether the policy continues if you leave the company. Directors often need both a clear view of company sick-pay reality and a policy that still works if remuneration is dividend-heavy.

• Personal IP — you own it; portable between jobs; benefit to you
• Executive / company IP — company pays; designed for directors; check dividend treatment
• Neither replaces advice on how your actual pay is structured today

Next Steps

Our FCA-regulated advisers can help you find the right income protection policy for your circumstances. We compare the whole market to find cover that fits your budget and needs.