Key Man Insurance
Specialists

Key man insurance is a policy taken out by a company on a key individual within that business. Normally this person would be of high value to the company and would be responsible for a good amount of the profits. The insurance is designed to pay out a lump sum of money to the business in the event of death or critical illness of the life assured. This money can then be used to help keep the company running covering the loss of profits. The key man insurance cost will depend on their age, sum assured, smoker status and term of the policy. Feel free to use our key man insurance calculator to work out the sum assured you may need.

Fill in our enquiry form – Go here to do this and fill it out the best you can or give us a call us on
0207 112 8844

Advice – We briefly discuss the needs of your company and help you to decide on the type of cover and how much you need.

Get a quote – We search the whole of market and compare quote’s from all the UK provides to find you the best deal!

Health Questionnaire – Once figures are agreed we would arrange to run through a 10/15 minute health questionnaire over the phone.

Underwriting – The health questionnaire is assessed by the underwriter which can sometimes include a medical.

Terms Issued – Once underwriting is complete we will be issued with terms which is when we can start the policy.

Start the policy – Once the policy is started you are covered and will begin to make monthly or annual payments.

Note: You don’t pay any money until you are happy with the terms and start the policy

Life Only Policy – A claim is paid out when the life assured dies during the term of the policy. For example many companies will not pay out on suicide within the first 12 months of a policy. A life only policy will often include terminal illness. This means it will pay out if the life assured is diagnosed as terminally ill. Terminal illness will often not be valid within the last 12 months of the term of cover.

Life & Critical Illness – Like above this will pay out on death or terminal illness, but will also pay out on diagnosis of a critical illness, as long as the diagnosis meets the definitions within the policy terms and is diagnosed within the term of the policy. For example a minor skin cancer may not reach the terms of a definition and would possibly have to be more serious before a claim would be valid. It is possible to take out a critical illness policy without life cover however this is quite unusual.

Key Man Income Protection – This will pay out a monthly sum of money to the company in the event of the key person is unable to carry out the own occupation due to illness or injury.

When it comes to critical illness there are quite a few differences between providers. Some will be more difficult to make claims than others which is why its worth having an in depth conversation with a qualified broker. We can provide you with easy to use comparisons to help you compare and make the decision. The cheapest its not always the best deal!

Anyone in your company could be a valid person to insure. Often the amount of cover is calculated on the rough estimate of the profits a person brings to the company and the loss that would occur without them. But of course everyone in the company in linked one way or another to a companies profitability. It could be the office manager who’s integral for the day to day running of the business. It could be the web developer whom without their know-how the companies main shop window could go down. Often a key person will be the brains behind the operation. So for example someone who knows the design mechanics or engineering details of a companies main product. Maybe the creator of the intellectual property, the invention, discovery or design. Many of the people we insure will be directors and managers, but as far as the underwriter is concerned as long as there is an insurable interest, then its reasonable for that person to be considered for key man insurance.

The company owns the policy and pays for the premiums. These premiums are tax deductible. In the event of a successful claim a tax free lump sum of money is paid to the company. Please go here for a more in depth details on accounting for key man life insurance.