Key Person Insurance
What is Key Person Insurance?
Key person insurance is designed to protect businesses from financial impact in the event that a ‘key person’ unexpectedly becomes unable to work due to death, permanent disability or critical illness.
A key person is someone whose knowledge, skills and experience are crucial to the success of your business. For a small business this may be the director of the business, partners in a partnership or a loan guarantor.
For a larger business, a key person may be someone whose absence would reduce the profitability of the business, such as a sales manager or a highly-skilled employee.
Benefits
The essential difference between Key Person Insurance and standard Life/TPD/Trauma cover is that on the death or disablement of the specified key person, it pays a benefit to the business, rather than the insured person or their family.
Key person insurance proceeds can be used to compensate for loss of revenue, provide debt/capital coverage and offset the costs of recruiting and training a suitable replacement.
Other Insurance Covers
TPD Insurance
Trauma Insurance
Income Protection
