Key Person Insurance
Key Person Insurance provides protection to a business against the untimely death or disablement of a key person. The policy proceeds may be used to replace the key person, extinguish debt etc.
There are many ways to determine whether the business should consider Key Person insurance, and generally the determination will be after a cost/benefit analysis relating to the financial contribution or effect that the person has to the particular business.
These factors may include:
- time it may take for the business to return to the level of operations/profitability that existed prior to the key person’s death or disability;
- additional costs associated with the recruitment and employment of a replacement;
- impact on company profits
- whether the person has provided a personal guarantee for a business loan
- Potential loss of customers or business opportunities
- Calling up of current loans, or
- Loss of goodwill
If you are interested in this product or require more information, please use the form below to contact us. Alternatively, you can contact us by telephone during business hours.
