KEYMAN INSURANCE:
What is Keyman Insurance?
Keyman Insurance (also known as Key Person Insurance) is a life insurance policy that a business takes out on a key employee or director whose knowledge, skills, or leadership is critical to the company's success. If the key person were to pass away or become critically ill, the policy provides a financial safety net to help the business recover from the potential loss.
Why Do Businesses Need Keyman Insurance?
A key person’s absence can lead to financial difficulties, loss of contracts, operational disruption, and even business failure. Keyman Insurance helps by providing a lump sum payment to:
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Cover lost revenue or profits.
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Recruit and train a replacement.
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Repay outstanding business loans.
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Maintain confidence among investors, creditors, and customers.
Who Should Be Covered?
Keyman Insurance is ideal for businesses of all sizes and is commonly used to protect individuals such as:
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Business owners, directors, or partners.
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Senior employees with specialist knowledge or client relationships.
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Top sales executives generating significant revenue.
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Anyone whose loss would severely impact business operations.
How Does It Work?
The business takes out a policy on a key employee.
The business pays the premiums.
If the key person passes away or suffers a critical illness (if included), the business receives a payout.
Types of Cover Available
Life Cover Only – Pays out a lump sum if the key person passes away.
Life & Critical Illness Cover – Provides a payout if the key person is diagnosed with a covered serious illness or dies.
How Much Cover is Needed?
The level of cover should reflect the financial impact of losing the key person. This can be calculated based on:
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Their contribution to annual profits.
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The cost of recruiting and training a replacement.
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Any outstanding business loans they have personally guaranteed.
Who Benefits from the Policy?
Unlike personal life insurance, Keyman Insurance is owned by the business. If a claim is made, the payout goes directly to the company to help manage financial disruption.
Key Benefits of Keyman Insurance
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Provides financial stability in times of uncertainty.
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Helps cover recruitment and training costs.
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Protects against loss of investor and customer confidence.
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Can be used to repay business loans or cover operational expenses.
HOW CAN WE HELP?
Our customisable insurance packages are designed with your specific needs in mind, ensuring that you are correctly covered. Plus, we're here to walk you through the entire process, ensuring that all your requirements are met and you have peace of mind knowing you are protected.
WHY CHOOSE COVERLIFE INSURANCE?
Our team of professionals have years of experience in the industry and can guide you every step of the way. We believe in providing quality advice and ensuring our clients have the right cover at the right price. So, whether you’re just starting out or looking to expand your business, trust CoverLife to provide you with the best possible insurance solutions.
Income Protection
Income Protection is a policy designed to pay you a regular monthly income if you’re unable to work due to illness or injury. It ensures your essential bills and living costs are covered while you recover.
Unlike statutory sick pay or short-term support, Income Protection can provide cover until you return to work, retire, or reach the end of your policy term – whichever comes first.
