| Executive Income Protection | Budget Executive Income Protection | Waiver of Premium | |
|---|---|---|---|
| Type of payout | A 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 work | A 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 work | Pays the plan monthly premiums after a waiting period |
| Types of cover | Level or inflation-linked | Level or inflation-linked | N/A |
| Basis of cover | Single life, life of another only | Single life, life of another only | Single life, life of another only |
| Term | Minimum 5 years | Minimum 5 years | Age 69 or the end of the plan term if earlier |
| Minimum age attained at entry | 17 | 17 | 17 |
| Maximum age attained at entry | 59 | 59 | 59 |
| Maximum age attained at the end of the policy term | 70 | 70 | 69 |
| 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 limits | Up to 80% of the employee's earnings;
| Up to 80% of the employee's earnings;
| N/A |
| Optional additional cover | Employer's Pension contributions: 30% of current earnings capped at £40,000 Employer's NI contributions capped at £42,500 | Employer's Pension contributions: 30% of current earnings capped at £40,000 Employer's NI contributions capped at £42,500 | N/A |
| Occupation definition | Own occupation | Own occupation | Own occupation or Homemaker |
| Maximum claim period | Whichever of the following happens first:
| Whichever of the following happens first:
| Whichever of the following happens first:
|
| Waiting period | 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) | 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 criteria | To apply the policy owner must be:
| To apply the policy owner must be:
| To apply the policy owner must be:
|
| 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 benefits | Employer:
| Employer:
| N/A |
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