Business Protection, Keyman Insurance
Who is a Keyman?
A keyman is a person who is responsible for the revenue, profits, growth, and sustainability of your company, either directly or indirectly.
For Eg: the Prime Minister or the President are key people of a country.
Similarly, it could be the founder, partner, director for your company. It could be any employee whose skills are vital to the company and not easily replaceable.
What is Keyman Insurance?
It is a policy taken on the lives of the key people whose death or permanent disability would impact your organization's ability to generate revenue, profit, grow and sustain.
Loss of such vital individuals/partners due to premature death or a severe illness may lead to severe financial setbacks. It could also be a potential threat to the survival of your organization.
Protecting such loss via Keyman insurance will enable the organization to mitigate losses, restore growth and goodwill.
How to select the right Keyman Insurance in Dubai?
Leading Insurance companies in UAE like Zurich International Life, Friends Provident, Metlife, Salama, and others offer the following plans, suiting different protections needs of a business;
- Jumbo Life Insurance
- The Whole of Life Plans
- Level Term Plans( Term Insurance)
- Decreasing Terms Plans
Jumbo Life Insurance
Jumbo life insurance policies are designed for meeting the Legacy Planning and Business Protection needs of High Net worth and Ultra High Net-worth Business Owners / Partners / Directors.
The minimum coverage amounts start with US Dollar 10 Million and can go to 100+ million Dollars.
Such plans may involve premium financing and some companies offer a guaranteed return on the premiums invested.
The Whole of Life Plans
A Whole of Life Plan offers flexible Whole of life cover with optional riders like Critical Illness Insurance.
It is particularly useful for Business Owners / Partners / Directors of less than 45 years of age, looking for a long cover term.
It is widely used to create the necessary cash-flows for buying out the shares of a deceased partner, allowing the surviving partners to continue the business without major interruptions in the event of the death of one of the partners.
Zurich Futura, MetLife Future Protect, and Salama Hyat Plus are some of the Whole of Life Policies available in UAE.
Click here to know more about Whole of Life Plans.
Level Term Plans or Term Insurance Plans
Term Insurance plans are cost-effective and are ideal for short-term protections needs, typically less than 25 years.
They are ideal for protecting business liabilities towards banks, creditors, and other third parties.
Click here to know more about Term Life Insurance.
Decreasing Terms Plans
Organizations widely use Decreasing term plans to cover term loans, which reduce every year. They are more cost-effective than Level term policies because the amount of cover decreases every year along with the outstanding loan amount.
Banks in UAE accept such policies as additional collateral when extending a term loan to an organization.
Call me on 050-2285405 or arrange a Free Consultation to explore suitable Keyman insurance or other insurance/investment solutions for the protection needs of your business.
