It is a policy taken out by a business to insure their most valuable employees (key people).
The policy is designed to protect the company from the financial impacts of losing their key people through death or illness. The business owns the policy and is the beneficiary of any payout.
Policies can be taken out as a life only insurance or with critical illness included. The benefit is a tax-free lump sum which is paid to the company in the event of a claim. The cover is taken out over a term, normally a 5 year or 10 year guaranteed premium depending on how long you think it’s needed.
All policies through us can be cancelled at any time without penalty or tie ins.
Your company could have various workers essential to profits. A key person is not always the top sales person or “bread winner”.
A key person could be the brains behind the operation. Maybe someone who knows the design mechanics or engineering details of the main product.
Maybe the creator of the intellectual property, the invention, discovery or design. Many of the people we insure will be directors and managers. But as far as the underwriter is concerned, as long as there is an insurable interest its reasonable for that person to be considered.
Typical key people will be:
The sum assured for a key person is really down to the individual business. What would the financial repercussions be tomorrow if that person was no longer around?
Most of the time a business owner will look at the turnover of the company and work out a percentage that the key person brings to the company, then insure for that amount. But it’s worth thinking things through a little more.
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We are directly authorised and regulated by the Financial Conduct Authority (FCA) for General Insurance, Private Medical Insurance, Pure Protection, Equity Release and Mortgage business. You can check our details and regulatory permissions via the Financial Services Register at https://register.fca.org.uk/.Our FCA reference number is 845592. Haystoun Financial Services Ltd of 19D Eastgate, Peebles, EH45 8AD trades as a Limited Company. Our Company Number is: SC588219
Haystoun Financial & Property Services is a family run business based in Peebles in the Scottish Borders. We offer mortgage, insurance and protection advice services, as well as full letting agency services.
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