Keyperson insurance is life assurance effected by an employer on the life of a key employee, who may also be a shareholder or director, to protect the company against the financial consequences of that individual's sudden death or serious illness.
The sudden death or serious illness of a key person could give rise to a number of immediate financial pressures for the company:
the 'calling in' of company loans, in particular any to which the 'key person' had given a personal guarantee
a costly interruption in business
a loss of business contacts
extra resources may have to be committed to the recruitment and replacement of the key individual.
WHO IS A KEYPERSON?
A keyperson is any 'key' employee or director on whom the business depends for its continued success, or existence, and on whose death or serious illness the business could suffer a financial loss.
For more information please contact our main office.
Shareholder Protection
Partnership Protection