{"id":72519,"date":"2020-12-08T13:04:16","date_gmt":"2020-12-08T13:04:16","guid":{"rendered":"https:\/\/www.templewealth.co.uk\/?p=72519"},"modified":"2021-07-07T15:57:38","modified_gmt":"2021-07-07T15:57:38","slug":"executive-income-protection","status":"publish","type":"post","link":"https:\/\/www.templewealth.co.uk\/executive-income-protection\/","title":{"rendered":"Executive Income Protection"},"content":{"rendered":"\n

Protecting the most important part of your business<\/strong><\/p>\n\n\n\n

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Running your own business is hard. Whatever it might be, you are constantly making sure that you are earning enough to not only pay for all your overheads but to also pay yourself a decent salary, otherwise what is the point?<\/p>\n\n\n\n\n\n\n\n

The problem is that you are sometimes so focused in the areas that you know best and making sure that your business, contents, vehicles and other tangible assets are insured adequately in the event of fire, theft, accidental damage or anything else that may interrupt the smooth running of your company that you forget about protecting the most important part of your business \u2013 you and your key employees in the event of incapacity.<\/p>\n\n\n\n

This is where Executive Income Protection comes into its own.<\/p>\n\n\n\n

Simply put, it insures the earnings, dividends and P11D benefits of an employee. It can also cover the employer pension and NI contributions of any employees you choose to protect which would also include yourself as an employee\/business owner. In the event of a valid claim, your business would receive a monthly benefit which can then be used to fund the employee\u2019s ongoing sick pay if they are unable to work as a result of becoming incapacitated due to illness or injury. This can help the employee to meet their financial commitments whilst not leaving them to rely solely on their savings or state benefits.<\/strong><\/p>\n\n\n\n

How does it work?<\/h3>\n\n\n\n

You, as the employer, would choose the benefit term, when you would want the income payments to start and for how long. There are, normally, different deferral periods to choose from which the provider would start paying the monthly benefit amount if the employee was unable to work due to sickness or disability.<\/p>\n\n\n\n

There are two types of definitions for incapacity:<\/strong><\/p>\n\n\n\n