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EXECUTIVE INCOME PROTECTION

Protect Your Income Through Your Limited Company if you become sick or injured and unable to work 

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👤 Tailored for Company Directors

As a director of your own limited company, there’s no sick pay, no employer to fall back on. If illness or injury stops you working, your income could stop too.

 

Executive Income Protection ensures you still get paid — tax efficiently.

Creative Director
Creative Director

The Harsh Reality for Directors

📉 The Average Monthly Living Cost for a Managing Director in the UK is £2,800 – £3,500

How long would your savings last if you had to cover £3,000 per month with zero income?

Most directors would last just a few months before things start falling apart.

When savings run out, you don't want to risk:

❌ Missed mortgage or rent payments

 

❌ Bounced direct debits
 

❌ Growing debt and interest
 

❌ Damaged credit rating
 

❌ Mental health strain
 

❌ Risk of losing your home or business

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David's Story

David owned a successful events production company.

 

In his early thirties he began to notice numbness in his feet and problems with his eyesight.

 

At first he pushed through it.

 

Like most business owners he felt he had to keep going.

Eventually he was diagnosed with multiple sclerosis.

Over time the physical demands of running his business became too much.

 

Long days on his feet, travelling and managing live events were no longer possible.

 

David was forced to step away from the day to day running of the company he had built.

 

This is where his Executive Income Protection policy changed everything.

Because his business had put the cover in place, David began receiving a regular monthly income through the company.

 

This allowed him to continue paying his bills, protect his lifestyle and avoid the financial pressure that so often follows a serious illness.

The policy also gave him the flexibility to stay involved in life and work on his own terms.

 

He was able to take on voluntary roles such as editing promotional videos and supporting major events like Reading Festival.

 

This gave him structure, purpose and a sense of normality without putting his income at risk.

Instead of his illness destroying both his health and his finances, David was able to protect his future, his business and his family.

 

His Executive Income Protection meant his income did not stop when he could no longer physically do the job.

This is exactly what the policy is designed to do.

At the Office

What Is It?

Executive Income Protection is a business paid policy that provides a monthly income to directors if they’re unable to work due to illness or injury.

 

Paid to the business, then passed to you, keeping everything above board with HMRC.

PERFECT FOR

✅ One-man or two-man Ltd companies

✅ Owner-managed businesses

✅ Directors paid via salary & dividends

WHY DIRECTORS LOVE IT

✅ Covers up to 80% of gross income (salary + dividends)
✅ Covers overtime, bonuses and P11D benefits
✅ Corporation tax deductible
✅ No P11d tax for director or business
✅ 
Making it more affordable than personal income protection
✅ Can include employer pension contributions
✅ Can include employer national insurance contributions
✅ Paid directly to the business, then to you

Laura, Managing Director

“As a solo director, being off sick could have meant no income. Executive IP meant my company paid me like normal, and claimed the premiums back against corporation tax.”

Tax-efficient structure

Monthly benefit up to £20,833 (£250k/year)

Covers own occupation

Optional pension contribution cover

"We work with the top providers offering Executive Income Protection, all Defaqto 5-star rated — giving you complete peace of mind while helping you secure the best deal available."
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Protect the Income That Protects Everything Else.

You’ve worked too hard to risk losing it all. This is not just insurance, it’s your financial survival plan.

FREQUENTLY ASKED QUESTIONS

Is income protection a P11D benefit?

Benefits are paid to the company and forwarded on to the employee through the usual PAYE system minus tax and NI. There is no tax liability to the employee on premiums and it's not classified as a P11D benefit.

How is executive income protection taxed?

Because the benefit is paid back to the company to help fund sick pay through PAYE, you can insure a higher percentage of your income (80%) in comparison to personal policies which are usually only (60%).  Executive Income Protection is classed as a business expense and is therefore usually tax-deductible against corporation tax.

What does income protection not cover?

Executive Income protection will usually not cover loss of income due to an injury caused by self-harm, certain pre-existing medical conditions and the inability to work for non-medical reasons such as insolvency

Alliance Financial Protection Limited (trading as Alliance Advisory Services) is authorised and regulated by the Financial Conduct Authority. Registered in England, No: 16223618. Financial Conduct Authority Registration No: 1034779.

You have the assurance that you're dealing with a fully regulated, trustworthy firm, protecting you from poor advice, hidden risks, and giving you peace of mind that your cover is arranged to the highest standards of compliance and professionalism

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Our advice is regulated by the FCA.

We do not give advice over the telephone.

All of our advised calls are done face to face over video call.

You can not purchase Relevant Life Cover online.

You must receive advice from an adviser who is authorised in business protection.

Address

Alliance Advisory Services
Kinetic House
Penns Lane
Sutton Coldfield
West Midlands
B72 1BL

Phone

Email

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