This cover provides a financial safety net if a key member of staff dies or is diagnosed with a serious illness. The claim is paid directly to the company to help keep the business trading as normally as possible, for example this can be used to cover loss of profits or for recruitment costs.

A “Key Man” is any member of staff whose death or critical illness would impact on profits for the business.

If there are multiple directors or partners within a business, should one pass away the business could be thrown into turmoil.

This cover allows the surviving owners and the deceased’s family to receive the value of the business, and the remaining business owners to keep control of the company. The Life policy “buys” the deceased shares from the family, via a legally binding agreement, meaning that they have the capital value paid to them at this difficult time, and the remaining partners / directors have control of the business – without the turmoil of uncertainty of business ownership.

Tax efficient, Death in Service employees (including salaried directors).

The company sets this up, and pays the premiums, but any proceeds pay straight to the family or chosen beneficiaries of the life insured, free of tax. This policy can pay out on death, terminal illness or critical illness.

Better still – the premiums are a tax deductible business expense.