Executive Income Protection:

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Executive Income Protection

LV= Executive Income Protection is designed for small and medium businesses to cover the cost of providing sick pay benefits to an employee. 
Executive Income ProtectionBudget Executive Income ProtectionWaiver of Premium
Type of payoutA regular monthly amount which can be used to fund ongoing sick pay for an individual business owner or an employee, should they become sick or injured and unable to workA regular monthly amount which can be used to fund ongoing sick pay for an individual business owner or an employee, should they become sick or injured and unable to workPays the plan monthly premiums after a waiting period
Types of coverLevel or inflation-linkedLevel or inflation-linkedN/A
Basis of coverSingle life, life of another onlySingle life, life of another onlySingle life, life of another only
TermMinimum 5 yearsMinimum 5 yearsAge 69 or the end of the plan term if earlier
Minumum age attained at entry171717
Maximum age attained at entry595959
Maximum age attained at the end of the policy term707069
Minimum premium£5 a month (premiums paid by monthly direct debit only)£5 a month (premiums paid by monthly direct debit only)Based on the total plan premium
Cover limitsUp to 80% of the employee's earnings;
  • maximum £25,000 per month/£300,000 per annum (level cover)
  • maximum £18,750 per month/£225,000 per annum (inflation-linked cover)
Up to 80% of the employee's earnings;
  • maximum £25,000 per month/£300,000 per annum (level cover)
  • maximum £18,750 per month/£225,000 per annum (inflation-linked cover)
N/A
Optional additional coverEmployer's Pension contributions: 30% of current earnings capped at £40,000 Employer's NI contributions capped at £42,500Employer's Pension contributions: 30% of current earnings capped at £40,000 Employer's NI contributions capped at £42,500N/A
Occupation definitionOwn occupationOwn occupationOwn occupation or Homemaker
Maximum claim periodWhichever of the following happens first:
  • the employee gets better
  • the policy end date
  • the employee dies
  • the person insured leaves your employment
Whichever of the following happens first:
  • 12 or 24 months claim period ends
  • the employee gets better
  • the policy end date
  • the employee dies
  • the person insured leaves your employment
Whichever of the following happens first:
  • the employee gets better
  • the policy end date
  • the employee dies
  • the person insured leaves your employment
Waiting period1, 2, 3, 6 or 12 months can be selected at outset (some occupations won't be able to have a 1 & 2 month waiting periods)1, 2, 3, 6 or 12 months can be selected at outset (some occupations won't be able to have a 1 & 2 month waiting periods)This will match the waiting period selected for Executive Income Protection/Executive Budget Income Protection
Eligibility criteriaTo apply the policy owner must be:
  • a business registered in the UK
  • permanently based in the UK
  • This policy can only be set up on a life of another basis.
The person insured/employee must be:
  • an employee of a UK business, which can include salaried company directors
  • earning a taxable income in the UK
  • resident in the UK and registered with a UK GP for at least 2 years prior to application.
To apply the policy owner must be:
  • a business registered in the UK
  • permanently based in the UK
  • This policy can only be set up on a life of another basis.
The person insured/employee must be:
  • an employee of a UK business, which can include salaried company directors
  • earning a taxable income in the UK
  • resident in the UK and registered with a UK GP for at least 2 years prior to application.
To apply the policy owner must be:
  • a business registered in the UK
  • permanently based in the UK
Tax position (based on our understanding of the current HMRC rules)The policy premiums are tax deductible for the employer/business and are not classed as a benefit in kind (P11D) for the employee. On claim the benefit is paid to the employer, and the employer passes the benefit on to the life insured through PAYE.The policy premiums are tax deductible for the employer/business and are not classed as a benefit in kind (P11D) for the employee. On claim the benefit is paid to the employer, and the employer passes the benefit on to the life insured through PAYE.N/A
Guaranteed increase options (limits apply - please see the policy conditions for full details)Increase in basic salary: up to 50% of the original cover, max £10,000 a year Increase in employer's NI contributions Increase in employer's pension scheme contributions.Increase in basic salary: up to 50% of the original cover, max £10,000 a year Increase in employer's NI contributions Increase in employer's pension scheme contributions.N/A
Additional benefitsEmployer:
  • LV= Business Care
  • Member Benefits
Employee:
  • Back to work support
  • LV= Doctor Services
Employer:
  • LV= Business Care
  • Member Benefits
Employee:
  • Back to work support
  • LV= Doctor Services
N/A
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