Key man Insurance

Why Key Man Cover Stops One Person Destroying Your Business

Your Questions Answered

Confused about cover? Discover the answers to some commonly asked questions

  • What is Key Person Insurance cover?

    What is Key Person Insurance cover?

    Key Person Insurance - often called Key Man Cover - is an insurance policy bought and owned by a business to protect its own interests. Cover is provided in the event that an important staff member is suddenly unable to work through critical illness and/or death.

    If a key person dies (or is diagnosed with a terminal illness with less than two months to live) or, optionally, suffers a serious or critical illness, then the business gets a cash lump-sum.

    • Premiums are paid by the business.
    • Proceeds are paid to the business.
    • Policy protects the business, not the individual.
  • Think about it this way:

    Think about it this way:

    We don't always realise that our businesses rely heavily upon the skills, contacts, or experience of particular individuals.

    Because even though many roles in our businesses can easily be filled, other positions require specialised skills, decades of experience, or specific qualifications.

    Finding people who fit the bill and who suit our companies is challenging. Recruiting those people (who are often in high demand) takes time, effort... and money.

    Protecting your business interests with Key Man Cover can mean there's less pressure to rush through the recruiting process and get the business operating normally again.

    That's because lost profits are covered while you recruit and train a replacement, so you can take the time needed to make sure your business is in exactly the same position as it wasbefore the loss of a key staff member.

  • Think about it this way:

    Think about it this way:

    According to independent research conducted by Legal & General (2011), 39% of company directors think that their businesses would fold within 18 months if they lost a key staff member to death or critical illness.

    And even though you'll insure the building and physical assets your business relies on, too many companies neglect to insure the most vulnerable asset of all - the key people without whom your bottom line will suffer.

  • 6 Things Key Man Cover Protects Your Business From...

    6 Things Key Man Cover Protects Your Business From...

    • Lost profits.
    • Development finance lost because a key team member is no longer involved.
    • The repayment of loans may become more difficult.
    • Detailed or specialist knowledge of processes and systems vital to your business can be lost.
    • The goodwill of customers or suppliers can be damaged.
    • Key accounts and clients can be lost to competitors
  • Who is a Key Person Anyway?

    Who is a Key Person Anyway?

    Research by Legal & General in 2011 showed that 95% of businesses have at least one 'Key Individual'. Think about it for a moment, and you might have more key people than you think...

    • Specialised Engineers
    • Creative Talent
    • Skilled Manufacturing Operators
    • Operations Directors
    • Sales Directors
    • Board Chairmen/women
    • Wealth Managers
    • Top Salespeople
    • Medical or Scientific Experts
    • Anyone you think you'd struggle to replace...
  • How does a Key Man Insurance policy work?

    How does a Key Man Insurance policy work?

    The policy itself is owned and paid for by the business. The life of a particular individual in the company is underwritten by the insurer. You'll have a separate policy for each key person.

  • Here's how the claim process works

    Here's how the claim process works:

    • Step 1: A Key Person in your business is diagnosed critically ill, or dies unexpectedly.
    • Step 2: The business submits the claim to the insurer, along with any supporting evidence (such as a copy of death certificate or medical report)
    • Step 3: A lump-sum, equal to the value agreed when the policy is taken out, is paid direct from the insurer to the business.
    • Step 4: The money received can be used however the company wants.
  • What You Get with S4P

    When You Speak to Specialists 4 Protection, You Get...

    • Fast and Friendly Service - from call to cover in three simple steps.
    • CII-Qualified, FCA-Regulated Advisers - with over 20 Years' experience advising accountants, business owners, and IFAs, so you know you're in good hands.
    • • Personal & Business Insurance Specialists - we only work in protection, so you get focused, expert advice every step of the way.
    • Quotes from All Major Insurers - we search the whole market to get you the most affordable plan for your needs.
    • Hassle-free Policy Set-up Service - we handle all the paperwork so you can get on with your life.
    • Always Completely Fee-Free, with No Obligation and No Pressure - get advice now, then get cover when YOU are ready.
  • 3 Steps

    From Call to Cover in 3 Simple Steps

    Life is hectic, so we've made getting cover as simple as 1-2-3

    Step 1: Talk to a protection specialist. We'll discuss your circumstances, show you the best options, then compare the market to get the most affordable quotes.

     

     

    Step 2: Choose to get protected. When you tell us you're ready to go we'll handle all the paperwork for you.

     

     

    Step 3: Wait for your policy documents. You'll get hard copies of everything by post. When you have them, you'll know your cover is in place.

     

     

     

  • Why Speak To Us

    Why Should I Get Advice?

    Business protection policies are slightly more technical than ordinary personal life cover, so as with any protection product, it’s best to get expert advice. If you want the best Key Man quotes, use an independent adviser who checks premiums with all the main life insurance providers. Doing so could save thousands over the life of your policy.

    Here’s what the Telegraph had to say when they checked premiums with banks, insurers, and independent advisers

    “The results show that in many cases the lenders and even the insurers themselves charge far more than intermediaries for exactly the same life and critical illness policies.”

    You can check out the Telegraph article here.

    At Specialists 4 Protection our advice won’t cost you a penny and is given with no obligation. We’ll help you understand how much cover you need, what type of policy is best, and we’ll scour all major Life Insurance providers to get you the best quotes.

    For free, no obligation advice just call 01243 219190 or give us your number and we’ll call you back.

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