Keyperson life Insurance gives a business capital if a key person gets a critical illness or dies.
This allows a limited company to plan for the potential financial loss that it would suffer on the death or serious illness of a key employee. For example, will any loans to the business have to be repaid on the death of a specific individual?
The cash could give a vital lifeline to pay loans, ease cashflow and fund training and recruitment of a replacement member of staff.
Market research suggests the following historic trends justify the need to put key person protection in place:
- 1 in 10 owners expect their business to stop trading straight away on the death of a key person
- 50% probability of at least one key person dying before age 65, in a firm with 5 key people
- 61% of business owners say losing a key person would have a major impact on business
So don’t let the loss of a key person put your business at risk, talk to We Finance about Keyperson Insurance and we will help you identify your business protection needs and guide you through the various types of cover available to make sure you get the right cover at the right price.