Different Types of Coverage

For both employed and self employed persons individual plans are available. There are also special types of plans for companies wishing to provide income protection for employees.

Director shareholders of close limited companies can decide that the company will provide income protection arrangements for them including selected employees. In this case the company makes the application and in the event of a claim the insurance company will pay the income to the company.

The company then passes the income to the director shareholder through the normal PAYE system. This income is treated as earned income and taxed in the normal way.