Secure Your Business with Key Person Insurance
Key Person Insurance, also known as Key Man Insurance, provides financial protection to businesses if a critical individual passes away or becomes seriously ill. This insurance is essential for maintaining the stability and continuity of your business.
What is Key Person Insurance?
Description
This insurance policy covers life or critical illness for a key individual whose loss would significantly impact the business. The business is the beneficiary and pays the premiums.
Function
It provides a lump sum payout to the business, helping to cover financial losses, recruitment costs, and loan repayments
Benefits
Ensures the business can continue to operate smoothly, protecting against the financial impact of losing a key employee.
Why is Key Person Insurance Important?
Financial Protection
Helps the business manage financial obligations, including lost profits and recruitment costs, in the event of a key individual's death or critical illness.
Operational Continuity
Provides the necessary funds to maintain operations and reassure stakeholders during challenging times.
Loan Repayment
Ensures that any outstanding loans or debts can be repaid without putting the business at risk.
Growth and Investment
Helps secure financing and maintain lender confidence, knowing that the business has a safety net in place.
Tax Implications
Premiums and Payouts
Premiums are generally tax-deductible if the policy benefits the business exclusively. Payouts are typically tax-free but treated as trading receipts, subject to tax on any profits.
Setting Up Your Policy
Expert Consultation
Work with a Business Protection specialist to tailor the policy to your business needs.
Required Information
Provide necessary documentation based on your business structure, whether it's a Limited Company, LLP, partnership, or sole trader.