Executive Income Protection

How long could your business afford to pay an employee an income while they are on sick leave?

Executive Income Protection is designed to provide employees, whether they are owner‑directors or valued members of staff, with an income if they are unable to work due to illness or injury.

How it works:

Executive Income Protection is owned by the employer and taken out on behalf of employees, who must work more than 16 hours a week. The premiums are paid by the employer and these premiums should qualify as a tax deductible expense for the business. This can make it a very efficient way to protect employees’ salaries.If the employee is unable to work due to illness or injury, then an income protection benefit will be paid to the employer, who could use it to continue to pay the employee a salary.Payments continue either until the employee is well enough to return to work, or their policy ends.

The amount of income protected

You can cover up to 75% of your employee’s earnings, less any State Illness Benefit entitlement, up to a maximum of €250,000.