11 Purdeys Way, Rochford, England, SS4 1ND
11 Purdeys Way, Rochford, England, SS4 1ND
Helping UK businesses since 2008
Protect your business from financial loss if a key employee or director is no longer able to work.
Key man insurance pays a business if a key employee or director dies or becomes seriously ill — helping replace lost profits, cover recruitment costs, and protect business continuity.
Business Protection Experts
Independent UK Broker
Established since 2008
Insurers we regularly work with
“We’ve specialised in business protection since 2008, helping hundreds of UK businesses put the right cover in place with clear, honest advice that puts clients first.”
Read more → Connect on LinkedInMost UK businesses rely on one or two key individuals whose knowledge, experience, or relationships drive revenue, which is why Key Person Insurance in the UK is so widely used.
Key Person Insurance provides your business with immediate financial support when it matters most. It helps to stabilise cash flow, protect client relationships and cover the cost of recruitment or temporary replacement — giving the company time to adjust without placing additional strain on finances.
A key person isn’t defined by a job title — it’s anyone whose absence would cause real financial strain or disrupt day-to-day operations. If losing them would reduce revenue, delay delivery, or damage important client relationships, they’re very likely a key person.
Often central to decision-making and lender confidence. If they’re not there, momentum can stall fast.
The people who bring in new business and protect key accounts. Their absence can hit revenue and cash flow quickly.
Hold hard-to-replace expertise or unique know-how. Replacing them can be expensive, slow, and disruptive.
Keep the wheels turning — managing suppliers, processes and cash flow. Losing them can cause knock-on issues across the business.
Key Person Insurance is vital if your company relies heavily on specific individuals whose expertise, leadership, or relationships are critical to success.
For example, if losing a founder, senior executive, or top salesperson would significantly disrupt operations or cash flow, it’s time to consider protection. The policy acts as a financial cushion — helping your business manage loss, reassure investors, and stay on track during difficult periods.
You should also think about Shareholder Protection Insurance if your business has multiple owners, as it ensures remaining shareholders can buy back shares should one pass away or become critically ill.
Founded in 2008, MyKeyManInsurance.com has helped thousands of UK companies protect their businesses with tailored protection solutions.
We compare policies from a broad panel of leading UK insurers, enabling us to recommend solutions that are appropriate for each client’s specific needs and objectives.
Our goal is simple — to provide clear, professional advice without jargon or sales pressure. You deal directly with experienced, qualified advisers — not call centres or third parties.
The company takes out a policy on the key individual, pays the premiums, and is the beneficiary of the policy.
If the insured person dies — or is diagnosed with a specified critical illness (where critical illness cover is included) — the policy pays a lump sum to the business.
The funds can be used to offset lost profits, cover recruitment or training costs, repay business loans, protect cash flow, or stabilise the company during a period of disruption.
Key Man Insurance can be tailored to protect your business against several unexpected scenarios. It provides a financial safety net if a vital employee, director, or shareholder dies or becomes critically ill, helping your company stay stable while you plan your next steps. This is particularly important where ownership and control are involved, which we explain in our key person vs shareholder protection guide.
This kind of protection is flexible — giving you the funds to manage disruption, maintain confidence with investors and clients, and safeguard your business continuity.
The payout from Key Man Insurance can be used in several ways to help your business recover financially and operationally after losing a key individual. It gives your company the breathing space it needs to adjust and move forward confidently.
Every business is different, so the way you use the payout depends on your structure and immediate priorities — but the goal is the same: to keep your business running smoothly without financial strain.
Key person insurance is priced very similarly to personal life insurance policies, as it depends on the individual insured and the level of cover required. However, the structure, purpose, and tax treatment can differ significantly.
For company directors, it is also worth considering alternatives such as relevant life cover, depending on whether the protection is for the business or the individual’s family.
Insurers assess age, health, smoker status, occupation, and policy term to calculate premiums.
Older age increases premiums. Taking cover earlier keeps costs lower.
Medical history and lifestyle impact underwriting and pricing.
Smokers pay significantly more due to increased health risks.
Higher-risk roles or reliance on the individual can increase cover levels.
Male, non-smoker, born 01/01/1981, term to age 67.
| Cover | Life Only | Life & Critical Illness |
|---|---|---|
| £100,000 | £11.81 pm | £68.03 pm |
| £250,000 | £22.25 pm | £159.30 pm |
| £500,000 | £45.37 pm | £313.93 pm |
| £1,000,000 | £84.32 pm | £576.39 pm |
Key insight: Life cover is relatively low cost. Adding critical illness increases premiums significantly but provides protection if the key person survives a serious illness.
Jody Pearmain, Director of My Key Finance Ltd
“In my experience, premiums can vary significantly between insurers for exactly the same person. It’s not just about price — it’s about structuring the cover correctly so it genuinely protects the business when it matters most.”
Without Key Person Insurance, the financial impact of losing a key individual can be immediate and difficult to manage — particularly for businesses that rely heavily on a small number of people. For many businesses, this risk isn’t fully appreciated until it’s too late.
For most UK businesses, the cost of Key Person Insurance is relatively low compared to the financial risk of losing a key individual. Even a short period of disruption can lead to lost revenue, recruitment costs, and pressure on cash flow.
In many cases, policies can start from under £20 per month for lower levels of cover — making it a cost-effective way to protect business continuity and give the company time to recover if the unexpected happens.
In reality, for most businesses, the cost is small compared to the potential financial impact — which is why many directors see Key Person Insurance as an essential part of their business protection strategy.
The level of cover depends on the financial impact of losing a key person — such as lost profits, recruitment costs, and the time needed for the business to recover. Many firms start with a multiple of profit or salary and refine using our Key Man Insurance Calculator.
Premiums are paid by the company and, in some cases, may be offset against corporation tax relief. Deductibility depends on the policy’s purpose and structure. See our Key Man Insurance tax guide and HMRC’s official guidance in BIM45525 for detailed examples.
Straightforward cases can be accepted within a few days, while others may need extra checks such as a GP report. We keep clients updated at each stage — you can start your application here.
James Wilson, director of a small IT consultancy, was diagnosed with cancer.
The Key Person Insurance policy we arranged for his company paid out £500,000. This funding
allowed the business to cover client contract delays, recruit a replacement, and reassure
investors that the company could continue trading. Without this cover, the business would
likely have folded within months.
Jody’s Note: “This case shows how vital it is to think ahead.
Losing James would have been devastating, but having cover in place gave the company
the breathing space to survive and rebuild.”
Protects your business by funding the purchase of shares if a shareholder dies or becomes ill.
Tax-efficient life cover for directors and employees — saving up to 49% compared to personal life insurance.
Ensures your company can repay loans if a key person dies or becomes critically ill.
Covers private medical care, giving fast access to specialists and treatment without NHS delays.
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What people are saying about us.
It is so amazing working with this insurance company. i have had many unpleasant experiences with some insurances company in the past but working with Mykey insurance has really change my opinion and believe about insurance company.
We received a wonderful service from mykeyman and will be using them again. The service and product knowledge from team is excellent. Everything was made easy to understand. The price was the most suitable we found too.
I had a great time working with My Key Man Insurance when I applied for the different insurances they offer. They were able to answer all of my questions quickly and effectively. I will recommend them to my friends and family.
Jody was very helpful in explaining the options and I thoroughly recommend his company
The standard of service was first class. They kept me up to date with progress on my Relevant Life Policy, followed up promptly following delays caused by my medical practice being slow in compiling reports, and responded instantly and clearly to any questions I had.
We received a wonderful service from mykeyman and will be using them again. The service and product knowledge from team is excellent. Everything was made easy to understand. The price was the most suitable we found too.
Jody was very helpful in explaining the options and I thoroughly recommend his company
There are many benefits of Key Person Insurance as it safeguards the business against…
Both Keyman Insurance and Relevant Life Cover are types of life insurance that the business pays for․
Learn the differences between Key man Insurance vs Life Insurance, including…
Key Person Insurance provides real peace of mind and a vital financial safety net if the worst should happen to a key employee or director.
In smaller limited companies, revenue can be concentrated in one or two individuals. If 40–60% of turnover is linked to one person, the financial shock can be immediate.
— Answered by Jody Pearmain, Director
One of the main drawbacks of Key Person Insurance can be the cost. Premiums can be high — especially for businesses with several key employees or older directors.
That said, when you weigh the potential financial loss of losing a key person against the cost of cover, most companies find the protection easily justifies the expense.
Expert insight – Jody Pearmain, Director of My Key Finance Ltd:
With Key Person Insurance, the business is both the policy owner and the beneficiary. This means the payout goes directly to the company, not the insured individual or their family. The company can then use the funds to cover lost profits, repay loans, or support business continuity.
Expert insight – Jody Pearmain, Director of My Key Finance Ltd:
The cover is for the business and is not for personal protection. If you want family benefits, consider a Relevant Life Policy instead.
You have several options if the insured key person leaves. You can review the insurance policy and cancel it. Alternatively, you could transfer ownership to the life assured and change the policy to a normal life insurance policy.
Key Person Insurance is usually not written into trust, because the policy is designed to benefit the company, not an individual. However, if the business owner and the insured person are the same, specialist tax or trust advice may be required.
Expert insight – Jody Pearmain, Director of My Key Finance Ltd:
Unlike shareholder or Relevant Life cover, Key Person Insurance should pay into the business directly. Placing it in trust can defeat the purpose unless there’s a specific tax or ownership reason.
Yes, small limited companies can take out Key Person Insurance. The key requirement is that the business pays the premiums and can show it would suffer financially if the insured person died or became critically ill.
Expert insight – Jody Pearmain:
Many of my clients are small firms where one person wears many hats — this cover can be a financial lifeline if that person is suddenly lost to illness or death.
No, Key Person Insurance isn’t legally required in the UK. However, lenders, investors, or shareholders may request it before approving finance or funding. It’s a safeguard rather than a regulation.
Expert insight – Jody Pearmain:
While it’s not mandatory, I’ve seen lenders make it a condition for certain business loans — it’s often a sign of good governance, not just insurance.
In my experience arranging cover for UK companies, insurers assess both the individual and the business.
They’ll look at the key person’s age, health, lifestyle, and occupation, plus the company’s turnover, profit, and reliance on that person.
As I’ve seen many times, providing full medical and financial details early speeds up underwriting considerably.
— Jody Pearmain, Director of My Key Finance Ltd
Most key person policies exclude claims linked to pre-existing medical conditions, suicide within the first year, fraud, or illegal activity.
High-risk occupations or hobbies such as motor racing, diving, or aviation are often excluded unless declared and accepted.
Each insurer’s terms vary, so I always advise clients to check their documentation carefully.
— Answered by Jody Pearmain, Director of My Key Finance Ltd
Underwriting smaller sums can often be approved immediately , while larger or more complex cases may require extra medical or financial evidence.
— Answered by Jody Pearmain, Director of My Key Finance Ltd
No. Each key person needs their own policy because underwriting and sums assured differ per individual.
However, multiple policies can be held under one provider to simplify administration and potentially reduce costs.
— Answered by Jody Pearmain, Director of My Key Finance Ltd
A claim usually requires a death certificate or medical evidence, plus business financial records showing how the key person’s absence affects profit.
Once these are provided, most insurers process valid claims within two to four weeks.
— Answered by Jody Pearmain, Director of My Key Finance Ltd
In most situations, premiums can be deductible under HMRC’s Anderson Rules, but it depends on who benefits from the policy and the purpose of the cover.
If the policy is designed to protect trading income and the payout is made to the company, tax relief may apply — although each case should be confirmed with an accountant. You can read more about key man insurance taxation here.
— Answered by Jody Pearmain, Director of My Key Finance Ltd
