Employer Benefits

Many businesses rely heavily on a few members of staff, hence there can be serious consequences for the business if they become ill or die.

KEY PERSON INSURANCE

Many businesses rely heavily on a few members of staff, hence there can be serious consequences for the business if they become ill or die. Small businesses in particular are often dependent upon a key person for producing business and managing clients, or the key person’s expertise is extremely valuable.

Businesses can effect key person insurance that would pay a benefit to the business should the key person die or, if critical illness cover is included, be diagnosed with a serious illness as defined in the policy. The sum assured required is usually based on the estimated financial loss to the business of the death or serious illness of a key person.

PARTNERSHIP OR SHAREHOLDER PROTECTION INSURANCE

Insuring the lives of the partners of a business against death or illness can provide the remaining partners with the funds to buy the deceased or ill partner’s share of the business.

The partnership’s assets then remain in control of the surviving partners and the deceased partner’s beneficiaries receive a lump sum reflecting the value of their share.

Similarly, insuring the life of key shareholders can be important. This means that in the event of the death of a shareholder, the proceeds of the insurance could be used to purchase the deceased’s shares either by the company or by the surviving shareholders – thereby ensuring that the shares do not pass to other parties.

OFFICE ADDRESS

Boundary House,
7-17 Jewry Street,
London,
EC3N 2EX

Telephone: 020 3872 1800
Fax: 08712 772514

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