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Key Person Insurance Policies | Free Guidance on Setting up your Policies in the best way for your Business

Key Person (or Key Man) Insurance. No business in the country wouldn't be affected by the absence of key personnel - which is why Key Man insurance is so popular. Getting the right policy, and setting it up in a tax efficient manner is just as important though, which is why we think talking to an expert is critical.

Key Person Insurance

Key Person Insurance (formally called Key Man Insurance) is essential for almost any business. The fact is that almost 52% of businesses felt that they would not survive the loss of a key man or woman on their team*.

What cover does a Key Person Insurance Policy Provide?

These policies can protect your business against the costs that are inevitable in the case of a critical illness, terminal illness or death of your most important employees.

Where is the best place to get advice about a Key Person Insurance Policy

But where can you turn when it comes to finding the right key man or key woman insurance policy or policies for your business?

Well that's where we come in. We are partnered with a team of advisers who have many years experience in helping business owners protect their business. They have specialist teams dedicated to business clients, large or small and will happily discuss your needs to ensure you are introduced to the most appropriate insurers so that you get great cover at a great price.

What is 'Key Man Insurance'?

Key man (or now more appropriately called 'key person insurance’ is an insurance policies that protect businesses from the loss of someone key to the business – perhaps because they cannot work due to a critical or terminal illness diagnosis, or because they have passed away.

In straightforward terms its a policy taken out by the business insuring itself against the costs incurred as a result of a key absence. This might allow you to recruit a temporary replacement, or sustain the business while the absence is being felt.

Is Key Person Insurance compulsory?

There is no legal requirement for a business to have key person insurance - however stakeholders from investors to banks make make it a requirement. it enables them to ensure that the business can survive and therefore protects their investment.

It is also though a policy that provides the whole management team (and often in the case of smaller firms, their families) reassurance that financial support is available at what would inevitably be a very difficult time.

Why is it better to use an advisor to find Key Personal Insurance rather than approaching an insurer directly?

We find that often one Key Person insurance broker will better suit one director or partner, and another company in a better situation to handle the other. Your advisor might suggest two different companies should forward proposals giving you more choice.

Also we find that because our partner introduces so much business to insurers they often get rate reductions or special policies - which mean that you benefit from lower premiums as a result.

Are there tax benefits when buying Key Person insurance?

The partners we deal with will also be delighted to discuss the most tax efficient way of protecting your business too. Its important that the policy is correctly set up to make the most of any tax breaks.

How can I find the best Key Person Insurance Policy?

Complete our online form by clicking the green button above and we will arrange a call back from a specialist adviser shortly - it's as simple as that.

*Legal and General Research 2021 - 52% of directors felt their business would not survive 18 months after the death or serious illness of a key person. L&G 2021

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This content was last reviewed on 08/12/2022