Every team has important individuals within it; whether it’s the owner, driving the business forwards, your sales manager, keeping the orders coming in, or your star IT guy, keeping you ahead of the curve. Key Person Insurance protects your business in the event of these important individuals being unable to work due to ill health, or in the event of their death.
With so many options to consider, it can seem very confusing. So, to help you out we've answered some of your most common questions. For more specific advice about the options available for your circumstances, why not get in-touch with one of our friendly advisors.
– Your company has enough money to cover a fall in profit or loss of revenue, keeping the company trading.
– Avoids reducing your own personal earnings as compensation for the loss of revenue
– Avoids the need to borrow money to keep the business afloat
– Staff morale remains positive knowing that your company is not in jeopardy.
– Provides you with money to recruit someone with the right skills. This could be the cost of using a recruitment agency and/or training.
Key person protection is a life and or critical illness policy, written on the life of the key person but owned by the business. The business pays the premiums, and when a valid claim is paid the money due is paid to the employer. If the key person is in a partnership, the policy is written on an own-life basis and may be placed in trust for the benefit of the other partners.
To find out more about mortgages, personal insurance, business insurance and protection or to discuss the options available for your circumstances, contact our team of advisors