'In Sickness and in Health'

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Maintaining Directors and their Partners Income

What happens if you are effectively the company as the lead director and you get ill or injured. This affects millions of SME business including accountancy practices themselves.

There is a potential solution for Directors and Contractors in Executive Income Protection.

The plan provides a level of benefit, agreed with the client, to protect the individual if an illness or injury prevents them from working and they suffer a loss of earnings.

What makes the plan even more comprehensive than normal income protection is that it can cover:

  • Salary
  • Dividends
  • Pension contributions (within limitations)
  • Employer National Insurance

It will also cover dividends for a spouse where the spouse is performing administrative duties in the business.

With this level of cover available after the selected deferred period, this allows the individual (often the Managing Director) to maintain the business and their lifestyle even during this difficult spell.

Some pricing figures as a guide are as follows:

  • 40 year old male, £45K benefit, Level cover, 13 week deferred period = £74.62 per month*
  • 40 year old male, £72K benefit, Level cover, 13 week deferred period = £117.72 per month*

*Quotes from Unum for their Executive Income Replacement Plan on 11th February 2019.

Require more information?

If you would like more information or would like to speak to us direct then call us on 01473 851605. Or if you would prefer, ask us a question online.

Xero Kashflow Quickbooks Sage Online

Ipswich: 01473 851605

Walton-on-the-Naze: 01255 678910

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