Key Person and Shareholder Protection
Key Person Insurance

Every employer knows that their employees are their most valuable asset, there may be one person who stands out as being a key person in the company’s success. Their unique skills, knowledge, business contacts and contribution to the company is seen as valuable. Key person insurance is life cover that is put in place to protect your business from financial loss should this person pass away or become ill. In this event, a key person policy provides the company with a lump sum to compensate for any financial losses – including paying any bank loans that involve the key person and to help find a suitable replacement for this person.

Shareholder Protection Insurance

When a company has more than one shareholder, protection of the business in the event of the death of one of these shareholders is imperative. Shareholder protection is life cover that is put in place to ensure continuity and control of business should a significant shareholder die or become critically ill. This policy provides a sum of money to any remaining shareholders which can be used to help buy the deceased’s share of the business. The premiums are paid by the company and the sum assured of each policy amounts to the value of each owner’s share in the business. This is used to remunerate the family of the deceased’s family and avoids any stress of having to sell assets or seek funding. 

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