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Editor’s note: First published August 2022 | Refreshed October 2025 with updated examples, tax insights, and insurer details.
10-second summary: If you’re a company director, your business can pay for your income protection policy, claim full corporation tax relief, and—best of all—there’s no Benefit-in-Kind for you. That means peace of mind and a tax-efficient safety net if illness or injury stops you working.
Not a company director? See our full guide to Income Protection by Job.
If you run your own company, you already know: when you’re not working, nothing moves. Clients wait, cash slows, and the bills keep coming. That’s where Income Protection for Company Directors steps in—your company pays the premiums, the insurer pays your income, and everyone stays afloat.
It’s income protection paid by your company on your behalf. If you can’t work due to illness or injury, the insurer pays up to 75% of your salary (less any State Illness Benefit) until you recover or reach retirement age.
Think of it as regular income protection with two key upgrades:
That’s about as tax-efficient as it gets. You protect your personal income, and the company gets a deduction—win-win.
Each month, your company pays the premium. If you’re signed off work long-term, the insurer pays the benefit to your company. Your company then pays your normal salary (net of PAYE, PRSI, USC). You stay on payroll, your household bills stay covered, and your company stays compliant.
Cover can continue until age 68 or 70 depending on your setup. Some directors insure themselves to 65 to match pension age, but there’s flexibility.
What’s a deferred period? It’s the waiting time between being signed off work and when your payments begin. The longer your deferred period, the lower your premium. Learn more in our guide to deferred periods.
Let’s be honest—most directors don’t get excited about insurance. But mention “tax relief” and “no Benefit-in-Kind,” and suddenly the ears perk up.
For full details on how BIK works (and why this policy is exempt), see Revenue.ie’s Benefit-in-Kind guidance.
For any director who likes to get money out of the business efficiently, this is the cleanest, most legitimate route available.
If you’re contributing to a company pension, you can also protect your pension payments through the same policy.
You can insure up to 33% of your salary (to a max of €50,000) to make sure pension contributions continue even if you’re out sick long-term.
It’s a small addition that keeps your retirement plans on track while the rest of your income is protected.
This often gets overlooked but it’s one of the most practical benefits in the policy.
If you land in hospital for more than seven consecutive days during your deferred period, the insurer pays a daily replacement income. No waiting until the deferred period ends—cash starts flowing while you’re still recovering in hospital.
It’s reassurance that your bills are covered from the very start of your illness, not months down the line.
Cost depends on:
For example:
Director, non-smoker, age 40
€70,000 income protected to age 68, 26-week deferred period.
Cost to company after tax relief: approx. €100 per month.
Your business can claim it as a deductible expense—and if your company can’t afford €100/month to protect its biggest asset (you), that’s a bigger conversation.
Ready to protect your income (and keep Revenue smiling)?
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⭐️⭐️⭐️⭐️⭐️ Colin Heffernan
“I found everyone I dealt with at Lion to be helpful and patient. Communication was prompt and clear throughout the process of applying for income protection and I felt I received excellent guidance as to which product/package was most suited to my needs. I would highly recommend them.”
Yes. If you’re a company director, your business can pay the premiums, claim corporation tax relief, and you won’t be charged Benefit-in-Kind.
Yes. You can protect up to 33% of your salary (max €50,000) to keep your pension funded while you’re off work.
If you’re in hospital for more than seven days, the insurer pays daily hospital cash immediately—even during your deferred period.
As Ireland's leading life insurance broker, we specialise in comparing the rates and policies from the top five Irish life insurance providers and offering the very best value quotes to suit the individual needs of our clients. Our expertise lies in finding a suitable insurance plan for those with specific needs, be it a particular illness, occupation or claim history, we've got you covered in every sense!
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