Key Person Assurance
Most organisations employ at least one person who is critical to the future success of the enterprise - be it the original founder, a rainmaker, shareholder or some other “Key Person” with a particular skill or expertise. Key Person insurance protects you against the financial consequences of losing key staff members.
Issues to ponder….
- Does any member of staff make a large contribution to the profits?
- Are borrowings covered by Life/Critical Illness Insurance on the directors/partners?
- If you already have a Key Person Protection package in place, does this include Critical Illness cover? Has the sum assured/premium been reviewed recently?
Key Person Assurance can provide a cash injection (either as a lump sum or as a flow of income) to the business if a key person dies or suffers a serious illness, allowing the business to continue trading at a time of considerable uncertainty and financial pressure.
Among other things, Key Person Insurance can cover:
- Loss of profits suffered until a replacement is found, is in place and is fully effective.
- Payment for the (often substantial) costs of recruitment and training of a replacement.
- If absence is due to critical illness, and if a return to work is likely, payment of income to the “absent” person, as well as funding the cost of a temporary replacement.
La Playa: Investing with Intelligence:
- Independent professional advice:
- “Can do” culture
- First class personal service
Mike Palmer Dip PFS
Financial Services Manager
mike.palmer@laplayainsurance.com
 | Talk to me on 01223 200674 |
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