Key Person Protection
Safeguard your business against the unexpected. Imagine the significant impact on your business if a main director or key employee were suddenly lost to serious illness or worse. The economic and operational consequences could be substantial. By consulting with a trained and qualified business protection specialist, you can take proactive steps to shield your company from these risks.
Key Person Insurance
Key Person Insurance protects a business from the financial impact of a key individual’s serious or critical illness, terminal illness (when life expectancy is 12 months or less), or death.
Some insurers will also consider a specific number of serious illnesss’s such as heart attack, strokes and cancers. If the insured key person is diagnosed with one of the covered illnesses within the policy term, a pre-agreed lump sum is paid directly to your business. A skilled adviser can help you determine the right levels of cover and policy terms.
We can research through various business protection products from multiple insurers to find the best solution for you. With coverage for at least 40 critical illnesses — including certain cancers, heart attacks, strokes, and multiple sclerosis.
Who is Considered a Key Person?
A key person is an employee whose absence, whether due to death or long-term illness, would significantly impact the business’s operations and profitability.
Losing a key individual, such as yourself, a vital employee, or a fellow director, could lead to:
- Decreased sales
- Reduced profits or turnover
- Time wasted
- Increased recruitment costs
- Disruption to development plans
- Additional pressure on the remaining team
Key Person Insurance is essentially a life insurance policy (with an option to include critical illness coverage) on a key employee. The business owns the policy and pays the premiums. If the insured person passes away or becomes critically ill, the payout goes directly to the business. The lump sum can be used to replace the individual, recover lost revenue, or however the business sees fit
