Key Person Cover

Whilst many companies happily insure themselves against the loss of valuable materials such as vehicles, office equipment, IT equipment etc, many companies do not cover against serious illness or the death of any personnel who are paramount to the successful running of the company.

Losing a Key person can have devastating financial consequences for your company such as:

• Profits may fall as a result.
• Creditors may no longer be prepared to offer the same facilities during a period of instability.
• The bank may cancel overdraft facilities or ask for loans to be repaid.
• Finances for new ventures or planned expansion may be less available.
• If profits are falling it may even become more difficult to meet the commitments to existing loans or overdraft payments.
• The company may have to repay the loan a key person has made to the company.
• Funding for the business may be dependant on achieving specific targets, which may be dependent on the key person.
• The loss of sales / profits and costly recruitment and training expenses.

Key person protection provides a lump sum of capital which helps safeguard a business against the financial effects of death, terminal illness and critical illness of a key person.   The policy proceeds are paid directly to the business to be used to help replace the key person and help cover the loss of profits that may occur.   The policy proceeds could help your business to continue trading.

If premiums are not maintained, then cover wil lapse

The policy may not cover all the definitions of a critical illness. For definitions please refer to the key features and policy document.