Key Person Cover allows a business to insure itself against the financial loss it would suffer if a key person of the company was to die or be diagnosed with a specified critical illness during the length of the policy.
This sort of cover is crucial, especially for small businesses, as the loss of that key employee could result in the business ceasing to trade.
Key Person Cover allows a business to insure itself against the financial loss it would suffer if a key person of the company was to die or be diagnosed with a specified critical illness during the length of the policy.
This sort of cover is crucial, especially for small businesses, as the loss of that key employee could result in the business ceasing to trade.
The company purchases the life insurance policy (which could also include Critical Illness cover) on its key employee(s), choosing both the amount of cover and the length of the time required for the policy.
The company then pays for the premiums as they are the beneficiaries of the policy. If the key person then unexpectedly dies or has a specified critical illness, the company would then receive a lump sum payment.
Proceeds of the money can then be used to provide an income to cover potential lost revenue plus the costs of sourcing and training a replacement member of staff, thus helping the company to get back on its feet again.
With the Critical Illness cover, you could afford to recruit a new member of staff to provide support during the absence of your key person. This helps the company to run as smoothly as possible and allows your key person the necessary time to fully recover before returning to work.
A person within the company that has a direct impact on the company’s profits, such as:
Loss of a key person to your business may have a devastating outcome financially but, by taking out this cover, both you and your company will have peace of mind that, should the worst happen, you would still be able to survive and function as a company.
77% believe that the absence of a key person for six months or more, due to serious illness would have an impact on their business. Almost 1 in 3 say this impact would be severe.
As a broker, we thrive on getting you the best policy for the best price and deal with the top insurers within this field.
You insure your business property and stock, but what about your key people?
For more information and a free quote on key person cover from a dedicated Protection Consultant, please call Stacey on 01270 758057 or click below.
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R K Henshall & Co Ltd are Independent Intermediaries and are authorised and regulated by the Financial Conduct Authority. Registration Number: 308865. Directors: J.R. Henshall B.A.(Hons) ACII Cert CII (FS), A.J.Simpson ACII, A.Brown FCCA. Written quotations, policy terms, conditions and exclusions are available on request.
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R K Henshall are very proud to support Lupus UK. Lupus UK is a charity very close to our hearts. Unfortunately, Nita Davies who had been a stalwart of our company from it’s very beginning lost her battle against this terrible illness in 2013. Lupus UK is the only National Charity which supports people with the immune system illness. (Registered charity nos. 1051610, SC039682) Click here to read more about Lupus UK.
