Key person insurance
Helping to mitigate the financial impact of a key employee passing away
Key person insurance helps to protect businesses from the financial impact of losing a vital employee, such as a director, executive, or another highly skilled staff member whose role is critical to the company’s success.
In the event of death, critical illness, or long-term incapacity, the business would receive a payout to help cover any lost revenue, hire a replacement, or manage other associated costs during a difficult transition period.
This type of cover is important for businesses that rely heavily on specific individuals to drive revenue or manage operations. The policy ensures business continuity by ensuring that the business can recover from the temporary loss of a key person without suffering financial instability.
Benefits
Financial stability
In the event of a key person’s death or critical illness, the business will receive a lump-sum cash payment.
Reassures stakeholders
Key Person Insurance shows employees, clients, and investors that the business has a risk management plan in place.
Business continuity
Provides financial support needed to help keep the business running smoothly while adjustments are made.
Helps to retain business value
The sudden loss of a key individual can decrease the perceived value of a business. Key Person Insurance ensures the company has funds to preserve its value.
Protects profitability
Key individuals often contribute significantly to a business’s profitability. The payout compensates for lost profit.
Supports any recruitment need
Recruiting a replacement for a key individual can be costly. Key person helps to cover any costs for recruitment, training and interim support.
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