Cover for Limited Company Directors
Most directors pay themselves a small salary plus dividends — and the wrong insurer ignores the dividends. Executive Income Protection and Relevant Life cover fix that, tax-efficiently.
Key facts at a glance
- Profession
- Company Director
- Recommended priority cover
- Executive Income Protection
- Typical benefit
- ≈ £5,800/mo — Example benefit on a ~£100,000 total remuneration (up to ~70%)
- Adviser
- FCA-regulated, whole-of-market UK broker
Reviewed by the LifeInsuranceForMe advice team · Last updated June 2026 · FCA-regulated UK broker
Directors are usually rated on the underlying role, which for office-based work means full own-occupation cover. The real value is structural: Executive Income Protection covers salary and dividends, and Relevant Life adds tax-efficient life cover.
Get to the right insurer — or lose your dividend cover
Go to the wrong insurer and they ignore dividends, leaving you badly under-insured. The right product is Executive Income Protection — it covers salary plus dividends and can be paid by your company as a business expense.
- Executive Income Protection covers salary AND dividends
- Premiums paid by the company — often a tax-deductible expense
- Up to ~70% of total remuneration replaced
- Pair with Relevant Life cover for tax-efficient life insurance
Why It Matters
The Risks Company Directors Need to Plan For
Limited company directors face the same trap: standard policies miss most of how you're actually paid.
Dividends ignored
The wrong insurer covers only your small PAYE salary, leaving you heavily under-insured.
No sick pay
Your company stops earning the moment you can't work.
Missed tax efficiency
Personal cover misses the tax advantages of company-paid Executive IP and Relevant Life.
Family exposure
Without Relevant Life, directors often overpay for personal life cover.
Recommended Cover
The Right Protection for Company Directors
Based on the specific risks of your profession, here's what we typically recommend — ranked by priority.
Executive Income Protection
Covers salary plus dividends — up to ~70% of total remuneration — and can be paid by your company as a business expense.
Relevant Life Cover
Company-paid life cover for directors — typically not a benefit-in-kind, and often cheaper than personal cover. (We can discuss the tax treatment with you.)
Critical Illness Cover
A tax-free sum on diagnosis of a serious illness.
Why Your Job Is Different
How We Get Company Directors a Better Deal
Mainstream insurers often misprice or misunderstand your profession. Here's how we fix that.
Dividend income covered
Executive IP insures your real total remuneration, not just PAYE.
Tax-efficient structuring
We arrange company-paid Executive IP and Relevant Life and explain the tax treatment.
Right-insurer placement
We steer you away from insurers who ignore dividends and under-insure directors.
"My accountant flagged that my cover ignored £80k of dividends. LifeInsuranceForMe set up Executive Income Protection and Relevant Life through the company. Far better and tax-efficient."
FAQs
Company Director Insurance — Your Questions Answered
Life Insurance & Income Protection
Company Director FAQs — Life Insurance & Income Protection
Common questions UK company directors ask about protecting their income and family.
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What cover are you interested in? (Select all that apply)
🛡️ Life Insurance
Lump sum for your family if you die
💷 Income Protection
Replace up to 70% of income if ill
❤️🩹 Critical Illness
Lump sum on diagnosis
🏠 Mortgage Protection
Clear your mortgage if you die
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