As you know, the future success of your business is dependent on a few key people
i.e you and the other keypersons in your company.
Simply put a keyperson is any “key” employee, whose death or serious illness could cause your business to suffer a financial loss.
Did you know that 3 out of 4 businesses close within 5 years of the death of the founder?
There is a very real possibility that your business will suffer the loss of a keyperson. 1 in 5 claimants are under 39.
The loss of a keyperson can have a major financial and operational impact on your business. Some of the ways in which your business may be affected are listed below.
Putting Keyperson Insurance in place can help your business overcome the financial repercussions of losing a valued member of staff.
The policy will pay out a lump sum benefit to the business on the death or serious illness of an insured keyperson. This lump sum benefit will compensate the business for any loss of profit or can be used to repay loans or recruit a suitable replacement.
Keyperson insurance is life assurance taken out and paid for by the business on the life of one of its employees. On the death or serious illness of that keyperson, the business will receive the lump sum.
Having determined who your key people are, the next question is how much you should cover them for? A general rule of thumb is to cover the keyperson for 5 to 10 times their current annual salary. However you should also take into account the following:
If you’re concerned that the death or serious illness of a member of your company could have severe repercussions for your company, please get in touch using the form below or call me directly on 05793 20836 and we can discuss putting a plan in place.
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