Executive income protection insurance

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Jackie Escartin

I had the pleasure of working with David from Swoop, and I couldn’t be more grateful for the support he provided throughout my loan application process. From the very beginning, David went above and beyond to guide me through every step with clarity, patience, and professionalism. He made what could have been a stressful experience feel smooth and manageable. David truly understood my business needs and worked tirelessly to ensure I got the best possible outcome. His dedication, prompt communication, and honest advice made a huge difference. Thanks to his help, I was able to secure the funding I needed — and I felt fully supported the entire way. If you’re looking for someone who genuinely cares and knows how to get things done, I highly recommend working with David at Swoop!

Jun 30, 2025

Joseph

Really good experience from start to finish. Our needs were fairly specific with the requirements of a specific maximum APR with unsecured terms and Predrag put us in touch with the perfect lender for our needs. Would highly recommend using Swoop as they were able to find us lending options that we simply wouldn't have been able to find on our own.

Jun 26, 2025

Syma Aurangzeb

Excellent customer service with a personal touch. Made the whole process easy from start to finish. Highly professional and efficient 10/10

Jun 14, 2025

London Elite

Outstanding service start to finish

Jun 11, 2025

Niki Still

Predrag was very helpful and suppportive through this process. He kept things on point and helped me to get what I was after. Incredibly appreciative of all he did to get me to this point.

Jun 9, 2025

Alun

With Ann Marie Swift, I experienced probably the most succinct, clear and helpful financial advice phone call I have had in many years. She listened and explained clearly, making the process very simple. Highly recommended!

Jun 8, 2025

Healthcare Company

Shane from swoop was very professional and patient. The service was fast and efficient. Highly recommend swoop funding.

Jun 6, 2025

Barry Chapman

Really couldn't fault the service. Adrian was highly efficient, going above and beyond to make sure everything was done and all boxes were ticked in time for the process to continue to completion. Thank you.

Jun 5, 2025

Jonno Bennett

The process was fast and efficient. They did everything that they said that they would with minimal fuss. Very friendly staff kept us informed along the way and once the facility was established a follow up welcome phone call detailed the process for drawing down the funds. I couldn’t be happier

Jun 4, 2025

Tyler Panayi

I had Ikhar from the beginning and she has been absolutely amazing and got the deal over the line. She was on point and I can’t thank her and he company enough! Highly recommend this company and Ikhar!! Thank you so much!

May 30, 2025

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Page written by Chris Godfrey. Last reviewed on May 22, 2025. Next review due October 1, 2026.

For many business owners, especially those within small companies, being unable to work because they are injured or sick will usually mean a loss of some or all of their income. This can have life-changing impact, causing them to fall behind on mortgage payments, run up debts, run foul of the tax man, even lose their business. Fortunately, executive income protection is available to eliminate this threat. Use it to protect directors and key employees – safeguarding their earnings and preventing financial catastrophe should the worst ever happen.

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What is executive income protection insurance?

Designed to support small and medium-sized companies, executive income protection (EIP) is a type of business insurance. It pays a regular monthly benefit should a key employee or director become too ill or injured to work. Popular with contractors and directors working in their own limited company, EIP can reduce the impact of long-term illness or injury, covering up to 80% of the insured’s income.

Key features of an executive income protection insurance policy

Suitable for directors or employees of limited companies
Usually counts as a tax-deductible expense to the company
Protects an individual from loss of income due to illness or injury
Tax-efficient way of taking out income protection
Can cover up to 80% of the insured’s income, including dividends and directors’ loans
Options to also cover employer national insurance payments and pension contributions, as well as spousal earnings

Policy details:

Policy term – policy will usually run until the employee retires or reaches a maximum age of 70 years.
Payout period – choose between short-term plans which pay out for 1-5 years, or a long-term plan that pays out until the employee is well enough to work again or reaches the policy end date.
Deferral period – this is the amount of time the insured needs to be off work before the policy starts to pay out. The longer the deferral period the lower the premiums are. 1 to 4 weeks is a typical deferral period.
Guaranteed or reviewable premiums – reviewable premiums are cheaper initially, however the insurer will retain the option to review the prices periodically (usually every 5 years).
Index linking – for extra cost, the plan may be set to track inflation. This will cost more but it means the plan is likely to remain more relevant in the future.

What does executive income protection cover?

Executive income protection insurance will cover the income of the insured, whether that is generated by salary, dividends, or director’s loans.

How does executive income protection work?

Executive income protection protects the insured’s income in the event of accidental injury or any medical issue they may suffer from except those they experienced in the past (known as ‘pre-existing conditions’).

The policy is arranged and paid for by the company (the policy owner) on the life of the employee (the person insured). If the employee becomes ill or injured and is unable to work, the company makes a claim against the policy. All payments from the insurer are paid to the company who then pass those payments to the employee via PAYE to fund their ongoing sick pay. The employee can use the funds to cover normal expenses, such as mortgage payments, food and utilities.

Who is executive income protection for?

Executive income protection is for the owners, directors and key employees of a limited company. Sole traders, the self-employed and partnerships who do not work through their own limited company should purchase individual income protection insurance. This cover is similar to EIP, but may have differing levels of cover, with any claims being paid direct to the individual, not via a company and PAYE.

Is this cover essential?

Yes, it is. The temporary or long-term loss of a key company director or employee can have great impact on the business, but it can be even more devastating to the individual who suffers sickness or injury. Relying on reduced income from statutory sick pay and state benefits may not be sufficient to cover their day-to-day expenses or fund any specialist medical support they need. Executive income protection insurance is designed to pick up the slack, ensuring company owners and their all-important employees can adequately maintain their lifestyle as they recover.

How Swoop can help

Don’t let illness or injury impact your business and the lives of your employees. Register with Swoop today to compare top-quality executive income protection from a range of insurers and to discuss all your business insurance needs.

Written by

Chris Godfrey

Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Wells Fargo Bank, Visa, Experian, Ebay, Flywire, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of US consumer and business finance.

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