A Key person protection policy can be taken out by a business. The policy provides life and critical illness cover for those who are crucial to your company’s success. The cover could be for your managing director, your top sales person, or someone with a specialist skill.
If any of the key people covered by the policy were to suddenly die or fall ill, a Key person protection policy will protect your business against the financial impact. A lump sum is paid-out directly to the business and this can be used to cover the cost of any profit losses, replacement staff, or loan repayments.
How Does Key Person Protection Work?
Key Person Protection is a life assurance or life assurance and critical illness cover policy taken out to cover the life of a key person within your business. The policy is owned and paid for by the employer, so any pay out is payable to the employer.
Why Do I Need Key Person Protection?
The loss of a key person in your business could have a severe impact. The business could suffer badly, with sales and profits falling and increased workloads for the remaining staff.
Key Person Protection is designed to pay out a lump sum on the death of the insured key person, during the length of the policy. It is paid as a lump sum and could significantly help the business to recover. The proceeds can be used to help replace lost profit or finding and hiring a replacement.