Income protection for business owners

Income Protection insurance is especially important, both for the owner protecting themselves should they fall ill and become unable to work, but also as a way for the business to protect itself against the temporary loss of a key person.

We’ve seen several new products launched in this space in the last year, with LV= unveiling a new Executive Income Protection product and Legal & General joining just two other insurers in offering Key Person Income Protection. In this ‘4 things you should read’, we’ve pulled together the insights published throughout the year on this subject.

How can businesses provide an income protection benefit to a director or single employee?

Whilst products such as Key Person and Shareholder Protection Insurance are an important means of providing a financial safety net for the company itself, cover for the owner or key employees can be overlooked. For many small businesses Group Income Protection may not be affordable or even viable (if there are too few employees), so an alternative solution is needed. In this insight we looked into Executive Income Protection and how it differs from standard income protection plans. Read more.

What are the details of the new LV= Executive Income Protection plan?

In July, LV= unveiled two new income protection plans, to complement their existing Flexible Protection Plan Income Protection and Personal Sick Pay policies. Both new policies saw LV= expand their offering to reach new markets and cover varied client types. In this insight we looked at their new Executive Income Protection plan. Read more.

Legal & General to include dividends in Exec IP pension contribution limit

Legal & General announced last month an improvement to their Executive Income Protection policy, by allowing dividends to be included in the employer pension contributions benefit. The move means clients who pay themselves a portion of their salary as dividends, can now potentially insure themselves for a higher pension benefit. Read more.

Legal & General unveil new key person income protection

Back in September Legal & General unveiled a new Key Person Income Protection plan, which expands their existing range of business protection solutions and sits alongside just two other insurers – Aegon and Royal London – in offering this benefit. In this insight we looked in more detail at the new policy and some of the main differences between Key Person Income Protection and other plans on the market. Read more.