Executive income Protection
What is Executive Income Protection?
Executive Income Protection is a type of insurance designed to provide financial protection for high-earning individuals or key executives within a company, it’s a great product for sole-directors of limited businesses.
This cover is tailored to address the unique income needs and financial responsibilities of executives. Executive Income Protection is also commonly referred to as Executive Income Replacement Insurance or Executive Salary Protection.
Here are some key features and considerations related to Executive Income Protection:
Income Replacement
Executive Income Protection provides a regular income stream to the insured executive in the event they are unable to work due to illness or disability. The goal is to replace a significant portion of the individual’s lost income during the period of incapacity, whilst not depleting monies from the company whilst the person insured is unable to work.
High-Earning Individuals
This type of protection is often suitable for executives, directors, or key employees whose income exceeds the limits of standard income protection policies. It is designed to address the unique earnings structure and financial responsibilities of high earners.
Tailored Cover
Executive Income Protection policies are typically tailored to the specific needs of the executive, considering their salary, bonuses, and other components of their compensation package. The cover is designed to provide a level of income that aligns with the executive’s standard of living.
Higher Benefit Limits
Executive Income Protection often provides higher benefit limits compared to standard income protection policies, reflecting the higher income levels of executives. It’s typical to be able to cover up to 80% of remuneration.
Integration with Corporate Benefits
Executive Income Protection may be part of a broader suite of executive benefits provided by the company. It can be integrated with other corporate benefits such as life insurance, pension plans, and health insurance.
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How can we help?
Executive Income policies are structured based on the specific needs of the executive and the company’s desire to retain and protect key talent and maintain profit.
It’s important for companies and executives to carefully consider the terms and conditions of these policies and our expert Advisers can go through the details such as the waiting period, benefit limits, and any exclusions.