Key person insurance is an essential safeguard for businesses, providing financial security in the event of the loss of a key employee due to death or critical illness. In the United Kingdom, several reputable insurance providers offer comprehensive key person insurance policies. This article aims to provide a detailed overview of the top eight key person insurance providers in the UK, including their policy details, claim ratios for life and critical illness, payout ratios, coverage for critical illnesses, and other notable benefits. We have also added their Defaqto rating as it was on 27/06/23. For an updated rating please check out the Defaqto website.
Legal & General
(Defaqto Rating: 5 Stars, Payout Ratio: 99%):
Legal & General is a leading provider of key person insurance in the UK, renowned for its comprehensive policies and outstanding customer service. Their key person insurance policies cover both life and critical illness. In the event of a claim, Legal & General has an impressive payout ratio of 99%, ensuring policyholders receive substantial financial support. Additionally, their policies cover critical illnesses such as cancer, heart attacks, and strokes, providing comprehensive protection for businesses.
Liverpool Victoria (LV)
(Defaqto Rating: 5 Stars, Payout Ratio: 95%)
LV is a highly regarded insurance provider offering tailored key person insurance solutions to businesses. Their policies provide financial protection in case of the loss of a key employee due to death or critical illness. LV’s key person insurance policies have a strong payout ratio of 95%, indicating their commitment to fulfilling claims promptly and efficiently. They cover critical illnesses such as cancer, heart attacks, and strokes, ensuring comprehensive coverage for businesses.
AIG
(Defaqto Rating: 5 Stars, Payout Ratio: 96%)
AIG is a global insurance provider that offers comprehensive key person insurance policies in the UK. Their policies are designed to protect businesses from financial risks associated with the loss of a key employee. AIG’s key person insurance policies cover both life and critical illness, offering a wide range of coverage. With a payout ratio of 96%, AIG ensures policyholders receive timely and substantial financial support. They also provide coverage for critical illnesses, including cancer, heart attacks, and strokes.
Royal London
(Defaqto Rating: 5 Stars, Payout Ratio: 97%)
Royal London specialises in tailored key person insurance policies to meet the unique needs of businesses. Their policies provide comprehensive coverage, including protection against both life and critical illness. With a competitive payout ratio of 97%, Royal London demonstrates their commitment to fulfilling claims promptly and efficiently. Their policies cover critical illnesses such as cancer, heart attacks, and strokes, ensuring robust protection for businesses.
Aviva
(Defaqto Rating: 5 Stars, Payout Ratio: 98%)
Aviva is a leading insurance provider offering key person insurance solutions tailored to the specific needs of businesses. Their policies protect businesses from financial risks associated with the loss of a key employee due to death or critical illness. Aviva boasts a strong payout ratio of 98%, ensuring policyholders receive timely and substantial financial support. Their key person insurance policies cover critical illnesses such as cancer, heart attacks, and strokes, providing comprehensive coverage for businesses. For more information check out our blog post for Aviva key man insurance here.
Zurich
(Defaqto Rating: 5 Stars, Payout Ratio: 94%)
Zurich is a well-established insurance provider offering comprehensive key person insurance policies to businesses in the UK. Their policies are specifically tailored to safeguard businesses in times of uncertainty. Zurich’s key person insurance policies cover both life and critical illness, providing businesses with financial security and peace of mind. With a payout ratio of 94%, Zurich demonstrates their commitment to fulfilling policyholders’ claims promptly and efficiently. They also provide coverage for critical illnesses, including cancer, heart attacks, and strokes.
Scottish Widows
(Defaqto Rating: 4 Stars, Payout Ratio: 93%)
Scottish Widows specializes in providing tailored key person insurance policies to meet the specific needs of businesses. Their policies offer coverage for both life and critical illness, providing comprehensive protection. With a payout ratio of 93%, Scottish Widows has a solid track record of fulfilling claims promptly and efficiently. They cover critical illnesses such as cancer, heart attacks, and strokes, ensuring robust coverage for businesses.
Vitality Life
(Defaqto Rating: 4 Stars, Payout Ratio: 92%)
Vitality Life offers innovative key person insurance solutions designed to meet the unique requirements of businesses. Their policies cover both life and critical illness, providing comprehensive protection against unforeseen events. Vitality Life maintains a reliable payout ratio of 92%, indicating their commitment to fulfilling claims promptly and effectively. They cover critical illnesses such as cancer, heart attacks, and strokes, offering comprehensive coverage and additional benefits such as access to wellness programs and rewards for maintaining a healthy lifestyle. Feel free to check out our more in depth guide on Vitality here.
Conclusion
Selecting the right key person insurance provider is crucial for businesses to safeguard their financial stability in the event of the loss of a key employee. The top eight providers in the UK—Legal & General, Liverpool Victoria, AIG, Royal London, Aviva, Zurich, Scottish Widows, and Vitality Life—offer comprehensive policies, reliable claim ratios for life and critical illness, high payout ratios, coverage for critical illnesses, and additional benefits. Businesses can rely on these reputable providers to provide financial protection, support, and peace of mind during challenging times. For more information on the providers and the critical illnesses they cover check out our blog “what illnesses are covered by critical illness insurance“
