The success of your business relies upon the dedication and acumen of its senior figures, so it makes sense to protect against their loss through illness or death with key person insurance.
After all, if your insure your buildings and equipment, why would you not cover what is arguably your most coveted asset: the people upon whom you and your business rely?
How badly would your productivity and profitability be affected if a crucial member of staff were unable to work for any length of time? What if they couldn't return? How much would it cost you to replace them, either temporarily or permanently?
This is where key person insurance (also known as key man or key woman insurance) can provide invaluable financial support, a lump sum payment to help cover both lost profits and costs associated with recruiting a comparable replacement.
Our expert and independent financial advisors can arrange key person insurance as a standalone life assurance policy, or combined with critical illness or income protection insurance.
In addition to covering losses incurred if a specified staff member is unable to work through diagnosis of a covered illness, they can arrange:
There are a number of factors you should consider before taking out key person protection, including the tax implications.
Our consultants will be pleased to offer advice on how you may be able to claim tax relief on your premiums should you be able to meet certain criteria.
If any of your key employees are also shareholders they can also guide you through the tax planning implications and, given they may receive both salary and dividends, inform you of how best to calculate the cover required.
They will also be pleased to offer a dispassionate and impartial opinion on those staff members whom it may be wise for your business to cover and the level of insurance required.