If a key person in a business dies, it can have a serious negative financial impact on the business. You can help safeguard your business against the death, terminal or critical illness of a key person by a Key Person Insurance Policy, also known as Key Person Protection.
Our consultants can talk to you in detail about all aspects of Key Person Insurance.
Key Person Insurance/Protection is a business insuring itself against the financial loss it would suffer if a key person in their business died or was diagnosed with a specified critical illness if chosen, during the length of the policy. It could also pay out if the key person is terminally ill.
Key Person Insurance is a life assurance or life assurance and critical illness cover policy taken out to cover the life of a key person within your business. The policy is owned and paid for by the employer, so any pay-out is payable to the employer.
The loss of a key person in your business could have a severe impact. The business could suffer badly, with sales and profits falling and increased workloads for the remaining staff. Key Person Insurance is designed to pay out a lump sum on the death of the insured key person, during the length of the policy. It is paid as a lump sum and could significantly help the business to recover. The proceeds can be used to help replace lost profit or finding and hiring a replacement.
