Key Person Insurance

Who’s the life and soul of your business? If you can name them, you probably need Key Person Insurance…

Most organisations employ at least one person who is critical to the future success of the enterprise - be it the original founder, a rainmaker, shareholder or some other “Key Person” with a particular skill or expertise. Key Person insurance protects you against the financial consequences of losing key staff members.

Issues to ponder….

1. Does any member of staff make a large contribution to the profits?
2. Are borrowings covered by Life/Critical Illness Insurance on the directors/partners?
3. If you already have a Key Person Protection package in place, does this include Critical Illness cover?  Has the sum assured/premium been reviewed recently?

Key Person Insurance provides a cash injection (either as a lump sum or as a flow of income) to your business if a key person dies or suffers a serious illness, allowing the business to continue trading at a time of considerable uncertainty and financial pressure.

Key person Insurance can cost as little as...

*based on a fit & healthy person

Among other things, Key Person Insurance can cover:

• Loss of profits suffered until a replacement is found, is in place and is fully effective.
• Payment for the (often substantial) costs of recruitment and training of a replacement.
• If absence is due to critical illness, and if a return to work is likely, payment of income to the “absent” person, as well as funding the cost of a temporary replacement.

Already have protection in place? Great, but when was this last reviewed..?

Both your business and the economic situation have probably changed significantly in the past couple of years, meaning that the protection you put in place may now not reflect your business going forward.