Legal & General includes dividends to Executive IP pension contribution limit

The Executive IP product, launched last year, was designed to provide cover for small business owners and individual employees on higher salaries. The change will see employer pension contribution benefits on Executive IP now includes dividends, as well as PAYE earnings, with a new limit of one-third of earnings, up to a maximum of £40,000 per year. The insurer stated that the change is the result of feedback from advisers and is aimed at allowing clients who take a proportion of their income in dividends to benefit from a higher level of cover for their employer pension contribution ...