At the heart of every successful business are talented, dedicated and capable people, but none of us know what the future will bring. Our research found that 59% of businesses believe they would have to stop trading in less than a year after the death or critical illness of a key individual.
A key person insurance policy, such as our Key Person Protection, helps safeguard a company against the financial impact of death, terminal illness (if the life expectancy is less than 12 months), or a specified critical illness (if chosen for an extra cost at the outset) of a key person.
Policy proceeds are paid directly to the business to help replace the key person and help cover any profit loss. The policy proceeds could help your business to continue trading.
What is ‘key man insurance?’
‘Key man insurance’ means the same thing as key person insurance, and refers to insurance policies that protect businesses from the loss of a key individual – men and women – who are unable to work due to a critical or terminal illness, or have passed away during the length of a policy.
Put simply, ‘key man insurance’ is where a business insures itself against the financial loss it would suffer in this eventuality. It's about giving your stakeholders the confidence that your business can survive and thrive even in the event of losing a key person through death or a specified critical illness.
