Key Person cover is life insurance (which can also include critical illness cover) taken out by a business on the life of someone crucial to the business. It provides a financial safety net if a key member of staff dies or is diagnosed with a serious illness (if Critical Illness Cover is included). The proceeds from the policy are paid directly to the company or partners, helping them to protect their profits or clear business debt to continue trading as normally as possible.
What is a key person?
A key person is any member of staff who has a direct impact on the business’s profits, such as the business owner, director, salesperson or any employee with specialist skills or expertise.