The most important asset in any business is its people. The ongoing profitability and sustainability and, as a result, the capital value of your business are largely reliant on the input of the key employees in the business. The loss of a key person could therefore pose a great risk to the business, and even lead to eventual ruin.
What is a key person?
A key person is someone whose absence through death or disability will have a material effect on the future of the business. If the key person is lost to the business as a result of death or disability, then the business could suffer a direct loss – whether it’s decreased sales, the high cost of replacing a skilled employee, or the loss of profits or sales while a new replacement is being trained.
Key person insurance is a simple, cost-effective solution that provides financial security and certainty for your business in the event of the death or disability of a key person.
It allows you, as the business owner, to take out a policy on the life of a key person to cover the business against the expensive replacement costs, or to provide cover against a potential loss. The business has the option to insure itself against this risk in a tax-effective manner.
Complete the online enquiry form and one of our financial planners will contact you.