Executive Income Protection:


Protecting businesses against sick pay costs when an employee can’t work

LV= Executive Income Protection is designed for small and medium businesses to cover the cost of providing sick pay benefits to a key employee. 

The policy is arranged and paid for by the employer (the policy owner) on the life of the employee (person insured). If the employee (person insured) becomes ill or injured and unable to work, the monthly benefit under a claim is paid to the employer (policy owner) who passes onto the employee via PAYE to fund ongoing sick pay. The employer can also cover other costs (for example their employer’s National Insurance and pension scheme contributions).


Key features of Executive Income Protection

Knowing your client is protecting the interests of their most important business asset – their people - will help set their mind at ease.

The monthly benefit pays out to the employer and is passed on to the employee via PAYE to cover the cost of sick pay, so protecting the business finances. 


Designed for small and medium businesses (SMEs).

Covers up to 80% of the employee’s earnings plus the employer's National Insurance and pension contributions (maximum levels apply).

  • Usually counts as a tax-deductible expense for the employer.
  • More tax efficient than personal Income Protection cover for the employee.


Executive Income Protection Product Profile

With details on suitability, target market, trust information and support – you’ll get the information you’ll need to recommend Executive Income Protection to your clients.

Important information

Here are some things you should know about Executive Income Protection:
  • Executive Income Protection is written on a life of another, single life basis only.
  • No death benefit is payable under this policy; death in service cover is provided by our Relevant Life Cover plan.
  • LV= Executive Income Protection has no cash value at any time.
  • The product is designed predominantly to cover an employee of a UK-resident business set up as a Limited Company or a Limited Liability Partnership; it must be a business that is capable of owning an insurance policy.
  • The employee (person insured) must be an employee of the policy owner's business, and must have been a UK resident and registered with a UK GP for the 2 years prior to the policy being taken out.
  • The policy normally ends if the employee (person insured) leaves employment with the policy owner's business, but there is an option for it to be transferred to a new employer.

Key information at a glance

Find out more on Executive Income Protection and compare features.

Cover options to suit your client’s needs

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Level cover

This offers a fixed amount of cover - it won't change and won't keep up with inflation.
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Inflation-linked cover

The amount of cover will go up each year, in line with inflation. The premium goes up by inflation multiplied by 1.5.
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Budget Executive Income Protection

This is more affordable for clients as it offers a shorter claim period – either 12 or 24 months.
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Talking to a client about Executive Income Protection?

We have a simple and handy guide to support your Executive Income Protection conversations with either businesses or their accountants. 

Setting up cover

Executive Income Protection is arranged on an individual and life-of-another basis. The employer is the policy holder, and the employee is the person insured.

The policy covers up to 80% of the employees’ earnings subject to the maximum levels detailed below:

  • Maximum amount of cover: £25,000 a month for level cover (£300,000 a year).
  • Maximum amount of cover: £18,750 a month for inflation linked cover (£225,000 a year and this will be capped at £300,000 if increases to the policy are made over time).

We’ll take the following earnings into account when calculating cover:

  • Annual salary (including overtime, bonuses and P11D benefits).
  • Dividends and spousal dividends, both of which would cease in the event of the employee being off work due to illness or injury. 

Free support for Business Protection clients

We’ve designed a 24/7 support network just for your clients. It offers legal, tax and VAT-advice, for free.

Business legal advice

Your client gets direct access to legal experts who specialise in commercial law.

They cover areas including:

  • Employment law and tribunal claims.
  • Health and safety law and requirements.
  • Disputes, including tenancy and debt recovery.
  • Commercial and contractual disputes.

Learn more about our Business Care line.


Business tax and VAT advice

Your client can speak to business tax and VAT experts, whenever they need to.

A team of experts, from accountants to ex-HMRC employees, are on hand to advise on areas including:

  • Tax and VAT relief.
  • Completing a self-assessment return.
  • Current and changes to tax rules.
  • Dividends paid from limited companies.
  •  Receiving a tax investigation notice
  • Advice is available 9am-5pm, Monday-Friday.
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LV= Doctor Services

We want to offer your clients more than quality business protection. Your clients can support their employees to take care of their health with our Doctor Services.

The employee and their spouse/partner* can access all six services by phone or app, at no additional cost. In addition, their children up to age 16 are covered for the Remote GP, Prescription Services and Second Opinion services, where the employee is the parental guardian.

  • Remote GP 24/7 – unlimited access to a UK doctor, meaning the employee and/or family won't need to take time off work to discuss medical concerns.
  • Prescription services – get a private prescription without needing a GP visit.
  • Remote physiotherapy – up to five free sessions** with a trained UK physiotherapist and receive a bespoke treatment plan through video consultations.
  • Second opinion – check a diagnosis and get treatment advice, by video or face-to-face.
  • Remote psychological support – up to five free sessions** of mental health support including counselling and Cognitive Behavioural Therapy from a network of highly trained therapists.
  • Health MOTs – 25% off health MOTs, assessing overall health and identifying any health risks.

* Spouse, civil partner or person with whom the person insured lives as a partner and at the same address.
** The five sessions limit is split between the person insured and partner/spouse. 

Contact Phone

Let's talk

0800 032 3962

9am - 6pm Mon-Fri

TextDirect: first dial 18001. We record and monitor calls for training and auditing.