KEY PERSON INSURANCE

The growth of any business is often the result of sought-after individuals showcasing their unique talents, driving the business forward by presenting a new way or perspective of conducting integral business activities. It is important that every business has a contingency plan in place if a key person in their business were to suddenly pass away, be diagnosed with a terminal illness or become unable to work for an extended period of time.

How Does Key Person Insurance Work?

Key person insurance (often referred to as key man insurance) protects businesses if a key person passes away or becomes unable to work.

Unlike Life, TPD or Income Protection, Key Person Insurance is taken out by the business on the people that they have nominated as being Key people. Hence Insurances are generally paid by the company.

Generally paid out a lump sum however some insurers may pay out a monthly benefit to cover the loss of income.