Business’s looking to take out a key person insurance need to make sure they understand all the various options available. Other than straight forward key worker life insurance there is also income protection insurance and critical illness that you can bolt on. You can see a brief outline below but for more information on different types of policies available click here.
A key man life insurance policy is much like a normal term life insurance plan apart from the beneficiary is a company rather than the life assured. The company will own the policy, pay for the premiums and receive and benefit from a claim. The premiums are driven much the same way as a normal life insurance policy with age, sex and smoker status all taken into account to come up with a cost.
Critical Illness Insurance
Critical illness insurance is often bolted on to a policy. A critical illness policy will pay out a lump sum amount of money on the diagnosis of a critical illness. Any claim must meet the definitions of critical illness set out by the insurance company it is placed with. All UK insurance providers who offer critical illness have to abide by the ABI (Association of British insurers) in order to call their policy critical illness insurance.
Income Protection Key Man Insurance
Income protection is a policy which will pay out a monthly benefit if the key man has an accident or illness which keeps them from working. There is a minimum deferred period to all income protection policies of 1 month. This can be increased through underwriting. Income protection key man cover is often taken out alongside a life and critical illness key person insurance.
Different providers offer different cover so its important to check the key facts for each. You can check provider details here.
For further information you can check out the blog www.mykeymaninsurance.com/blog/