Key Person Protection
Why have Key Person Protection?
The success of almost all SMEs is dependant on a few people who make significant contribution to the profit of the company. These key people could not only be owners or shareholding directors, but also sales people, R&D staff or those with specialist skills or knowledge. Whatever they do, losing them because of death or illness could have disastrous consequences for the business. Key Person Protection provides a cash lump sum to the business to ensure it is able to continue until such time as the key person either returns or is replaced. How does Key Person Protection work?
A Key Person assurance policy is owned by the company and premiums are paid by the company. The key person can be insured against death, critical illness and/or accident and illness to provide a lump sum or income for the business. The proceeds can be used for:
✔ Repayment of directors loans
✔ Recruitment costs and interim contractor’s fees
✔ Payment of fixed costs when profits are falling
✔ Repayment of loans or overdrafts
Jay Financial can take you through all the options available to you, to ensure you tailor your cover to suit your needs.
Email firstname.lastname@example.org or call 01283 761866 to arrange for a no-commitment initial discussion.
NB Key Person Protection is often confused with Ownership Protection
. Visit our dedicated web page for more information on this policy.