Executive Income Protection Calculator

Executive Income Protection Calculator

See how much a business owner or director could save each month, and how much more cover they could secure, by funding income protection through the business instead of personally.

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Based on 2026/27 UK tax rates (England). For illustrative purposes only.

Maximum Cover Available

Max. Employer Pension Contribution£16,666.67
Max. Personal IP Benefit Assured£25,000.00
Max. Executive IP Benefit Assured£40,000.00

Illustrative maximum benefit levels typically offered by insurers — always confirmed by underwriting.

Personal Income Protection

Paid from Gross Personal Income

Gross Earnings Needed£192.31
Employee Income Tax£76.92
Employee National Insurance£15.38
Employer National Insurance£28.85
Total Gross Cost£221.15
Less Corporation Tax Relief-£42.02
Tax Adjusted Total Cost£179.13

Executive Income Protection

Paid as Allowable Business Expense

Employer Monthly Premium£100.00
Less Corporation Tax Relief-£19.00
Tax Adjusted Total Cost£81.00

Your Monthly Saving

Net monthly saving using Executive Income Protection: £98.13 (a saving of 54.8%)

This calculator provides an estimate only based on the rates entered and does not constitute tax or financial advice. Actual savings depend on your individual and company circumstances — always confirm with a qualified accountant and one of our advisers.

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What is Executive Income Protection?

Executive Income Protection is a type of income protection insurance that a limited company can set up for a director or key employee. The premiums are paid by the business as an allowable expense — meaning they attract Corporation Tax relief and are not subject to Income Tax or National Insurance for the employee.

By comparison, a personal income protection policy must be paid out of income that has already been taxed, meaning you need to earn considerably more gross income just to cover the same monthly premium — and cover levels are typically lower.

This calculator provides an estimate based on the rates you enter. Always speak with a qualified accountant and one of our advisers to confirm the exact savings and cover available for your business.

Want to set up Executive Income Protection for your business?

Speak with our advisers to structure tax-efficient income protection for you and your team.

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This calculator provides an estimate only.

Based on 2026/27 UK tax rates (England). Tax rates and reliefs can change. Always verify current rates and seek professional advice for your specific situation.

Important Information

Your home may be repossessed if you do not keep up repayments on your mortgage.

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