Key Person Protection
In Chelmsford and Essex
Also known as key person insurance, key person protection is the situation whereby a business covers itself against financial loss it may suffer in case a key individual in the business passes away. Furthermore, it is also applicable after the personâ€™s diagnosis with a specific terminal or critical sickness, during the duration of the key person protection policy.
How Key Person Protection Works
Usually, Key Person Protection is either life insurance with critical sickness cover or life assurance policy was taken out to insure the life of a crucial individual within your business. Additionally, the employer owns and pays for the plan. Thus any claim on the policy made would be owed to the employer.
Importance of Key Person Protection
Your business could suffer severe impact after the loss of a key person. It includes the business suffering negatively, due to an increase in the workload for the remaining staff members as well as a reduction in profits and sales.
On the death of the covered key person, Key Person Protection was intended to pay a lump sum during the policyâ€™s length. Since it is paid as a lump sum, it considerably helps the business after the loss to recover from the financial difficulty. Subsequently, the proceeds realised are used in hiring a replacement of the key person or replace the lost profits.
Are you looking for key person insurance in Essex? We offer mortgage advisor services throughout Essex, London and the surrounding areas including:
- South Benfleet
- Castle Point