All businesses have key employees who are essential to their success. These employees often make the difference between the business keeping afloat or not surviving at all.
Some of the problems a company can face due to loss of a key person are:
- The need to recruit or headhunt and/or train a replacement person
- Loss of existing contracts
- Repaying a loan the key person has made to the business
- Loss of detailed knowledge/expertise necessary to run the business
- Loss of goodwill
- Loss of important personal and business connections.
Key Man Insurance provides business owners, customers, investors and lenders with the reassurance that a business can survive and keep going through difficult times.
Key Man Insurance pays out a lump sum in respect of a specified member of your company in the event of Death, Permanent Total Disability, Accidental Hospitalisation or Critical Illness:
- Can cover Life, Critical Illness, Permanent Total Disability and Accident & Sickness of key personnel
- The company purchases the policy on the key employee(s), pays the premiums and is the beneficiary of the policy
- The company receives a fixed monetary sum that it uses for expenses, or a lump sum in the event of the Death of the employee(s).
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