The most valuable asset to any business is its people.Without people, a company’s survival would be put at serious risk. There are a range of Business Protection options; Key Person Cover, Share & Partnership Protection and Relevant Life Cover, to offer assistance when it’s needed most. It is possible to provide financial security to both the company itself, and the family members of key employees, and there are even options to cover specified critical or terminal illnesses.
Relevant Life Cover is a tax-efficient life insurance policy, allowing companies to offer a death-in-service benefit to its employees (including salaried Directors). It’s set up by the company and pays out a tax-free, lump sum on the death (or diagnosis of a terminal illness) of the person insured. The proceeds go directly to the employee’s family or financial dependants. As a result, this is seen as arguably the most holistic and progressive option for businesses to take.
Key Person Protection is a life assurance and / or critical illness cover policy taken out to cover the life of a key person within your business. The policy is owned and paid for by the employer, so any pay-out is payable to the employer rather than the key employee.
This is often known as “Key Person Insurance” or “Key Man Insurance”. This is a form of protection against financial loss that businesses take out, to protect against serious issues should a key member of the company die or become critically ill. Again, critical illnesses are specified on these policies. It also pays out if the key person is terminally ill, except in the last 12 months of the policy.