Cover for Key Person
You are the Key person in the family, be sure that you leave them protected.
Cover for Key Person
Providing financial protection against lost revenue profits and the capital value of your business should a key person suffer a major illness, injury or death.
Key person insurance (also called key man insurance) is a type of corporate-owned life insurance which insures an employer against the death or incapacitation of a so-called key employee, usually an executive or partner. It is used by both large companies and small partnerships alike.
An employer may take out a key person insurance policy on the life or health of any employee whose knowledge, work, or overall contribution is considered uniquely valuable to the company. The employer does this to offset the costs (such as hiring temporary help or recruiting a successor) and losses (such as a decreased ability to transact business until successors are trained) which the employer may suffer in the event of the loss of a key person.
The key person may be an executive, principal shareholder, a senior scientist, or a particularly effective salesperson.
Smaller companies with partners may use it to protect each partner. For example, if a partner of a firm passes away, usually the other partner or partners need to purchase the shares in the business from the family of the deceased. Having insurance permits this to be more easily facilitated where the correct buy/sell agreements are in place. Buy/sell agreements are a written agreement the business enters into to determine each stakeholders’ plans should any of them unexpectedly suffer a major illness, injury or death.
The cover required is usually determined by the size of the business and the person that is to be insured.
Insurance Quick Links
Call us for a free chat today
Do you know how social media platforms can influence you to spend impulsively? Is there an association between social media usage and spending? Research shows there is. For example, one study found that social networks such as Facebook and Instagram can motivate...
If five golden rings and a whole menagerie of birds sounds like it might blow the budget this year, then perhaps the classic carol needs a rewrite. That’s why we’ve put together a list of hot tips to make this Christmas a breeze without scorching a hole in your hip...
Like it or not, we live in interesting times. More than a decade after the Global Financial Crisis, the global economy is facing fresh headwinds creating uncertainty for policymakers and investors alike. This time around it’s not a debt crisis, although debt levels...
Endeavour House, Ground Floor Suite 204, 3-5 Stapleton Avenue Sutherland NSW 2232