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Running a company takes dedication and hard work. But what happens when illness or injury suddenly prevents you from working?

It has been estimated that 60% of businesses in the UK would close if their key person wasn’t able to work due to illness or injury after only one year.

In an instant, everything you’ve built could be at risk. A single accident or serious illness can devastate your finances.

Income protection for Company Directors could safeguard your financial well-being during these challenging times. We’ve spent over 20 years specialising in financial protection for professionals. We recognise the complex income structures common among Company Directors, which means we’ll discuss cover that considers such things as salary and dividend payments.

If you’re interested in securing your financial future, get in touch today for a free, no-obligation quote. Don’t leave your financial security to chance.

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What is Income Protection?

Income protection safeguards your financial well-being if illness or injury prevents you from working. It delivers regular monthly payments, typically covering up to 80% of your gross income, giving you peace of mind during recovery.

Unlike critical illness cover that typically pays a one-off lump sum for specific conditions, income protection provides ongoing financial support for a fixed period.

Income protection can be purchased as a standalone policy or you may also want to consider key person cover which is a life insurance policy taken out to cover the life of a key person within your business. Many Directors opt for both to ensure complete protection for themselves and their families.

Why Company Directors Need Income Protection

As a Company Director, you likely have minimal sick pay entitlement beyond statutory sick pay. This could leave a significant financial gap if you’re unable to work for an extended period. Standard employer benefits that regular employees might receive simply don’t exist for many directors.

Limited Companies can pay the premium as a legitimate business expense, offering valuable tax efficiencies. This makes income protection not just sensible protection but also financially advantageous from a tax perspective. Check out our pages on:

Flexible Plans to Suit Your Needs

We understand that each Director’s situation is unique. That’s why our income protection policies offer various customisation options to match your specific income requirements.

Choose between level cover (fixed benefit) or inflation-linked cover that increases over time to maintain your purchasing power. Inflation-linked policies ensure the real value of your benefit doesn’t diminish as living costs rise.

Select your preferred deferred period, how long you must be off work before payments begin. Options typically range from 1 week to 12 months. Longer deferred periods result in lower premiums, allowing you to balance immediate protection with cost-effectiveness.

You may also want to discuss “own occupation” cover for directors. This could impact how you receive benefits if you cannot perform your specific directorial role. This distinction is crucial for specialists and high-earning professionals whose skills are not easily transferable.

Who Should Get Income Protection?

Directors of limited companies who rely on salary and dividends for income are prime candidates for this protection. Your financial responsibilities don’t pause when illness strikes; mortgage payments, school fees, and lifestyle commitments continue regardless.

Contractors and small business owners with little or no employer sick pay should consider income protection essential. Without it, an extended illness could quickly deplete savings and threaten financial stability.

Those seeking to protect their lifestyle and financial commitments benefit greatly from this safety net. Income protection helps maintain your standard of living during recovery, preventing difficult financial compromises during already challenging times.

Whether you’re a Company Director or junior employee, everyone benefits from the financial security of income protection.

Why Choose Sports Financial Services?

With over 20 years of experience providing income protection, we understand the unique needs of Company Directors. Our specialist knowledge ensures you receive guidance tailored to your specific circumstances and requirements.

We work with leading insurance brokers to provide low-cost, high-quality protection. Our established relationships allow us to secure competitive rates without compromising on cover.

Our friendly team is ready to discuss your options and provide all the information needed to make an informed decision. We explain complex policy details in clear, straightforward language, empowering you to choose the right coverage.

We pride ourselves on offering flexible plans that can be adjusted as your circumstances change. Discuss how your policy could evolve alongside your career and business growth.

Get in Touch Today

Don’t wait until illness strikes to consider your financial protection needs. Securing income protection and key person cover now could ensure coverage when you need it most.

The sooner you arrange coverage, the more affordable it typically becomes. Younger, healthier applicants generally secure better rates, making early action financially advantageous.

Get your free, no-obligation quote by filling out the contact form below. Our experts will assess your specific situation and discuss cover options tailored to your needs as a company director.

Alternatively, give us a call on 0345 565 0935 to speak directly with a member of our expert team. We’re ready to answer your questions and help you find the perfect coverage solution.