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How can businesses provide an income protection benefit to a director or single employee?

How can businesses provide an income protection benefit to a director or single employee?

About The Author

mm

Rob Harvey supports Protection Guru in it’s detailed research & benchmarking of protection products and features. He works alongside the team in helping drive product innovation and improvements with insurers and engages with adviser firms in ensuring they have the right tools & resources at their disposal to deliver the best protection advise. Prior to joining Protection Guru Rob spent 9 years at protection specialists Drewberry, where he worked as an adviser, learning & development manager and finally head of health & protection. In his spare time and when not out enjoying the pubs & bars of Brighton, Rob collects vintage clothing, is an historic motor racing enthusiast and avid country walker.

4 Comments

  1. David Lee Martin

    I find the disparity in pricing between personal and business totally unjustified and have not managed to put in place a single Executive IP plan yet?

    Reply
    • mm

      Hi David,

      There is actually no pricing differential between individual and Executive IP with Legal & General (and I believe Aegon as well). So on a like for like quote, the premium from both insurers would be identical on their personal and Exec products. Obviously if the benefit is increased on the Exec, to account for tax deductions, that will push the price up. The actual cost to the policy holder should be less as well, as the plan could qualify for tax relief.

      UNUM are slightly different because they don’t offer individual cover and the pricing for their Exec plan is very different.

      Reply
  2. Darren Houlcroft

    How long in reality does the LTD company have to be trading in order to successfully instruct a policy? Single company directors when starting a LTD company may take very little in the way of income in the first months/year of becoming established….which makes me think the business (employee/director) is paying an individual a ‘typical’ monthly salary for a period of time before being possible to even create a policy…or am I completely wrong..

    Reply
  3. david berry

    real benefit of executive income protection is they can cover the employer national insurance plus pension contributions and claim has a business expense . useful for a director and in case of sickness covering outgoings which would otherwise have to be taken from the profits of the company

    Reply

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