Keyman Insurance

A policy which is taken out to protect the business against the death or serious illness of a key employee.

A key employee might not necessarily be one of the owners of the business, it might also be a sales manager, designer or financial controller. Basically if you feel that your business would suffer in the event that this person dies or become seriously ill, then they are a key person and you should consider taking our key person insurance. This is often a simple term life insurance policy, which might also include critical illness, owned by the firm or company with the key person named as the ‘life assured’.

These funds can be used to meet the company’s financial needs while it reorganises or recruits a replacement. In the case of a critical illness claim it is possible the Keyman will return to work, so the funds could be used to pay a temporary replacement or replace lost profits More on Keyman Insurance