Key Man Insurance

KeyMan Insurance

KeyMan insurance is an insurance availed by the firm on the life of the Key Person/Partner/Director of a Business. The firm pays the premiums and is also the beneficiary of the policy.

This policy ensures business continuity by providing a cash lump-sum in the event of death, disability or critical illness to the Key Person/Partner/Owner of the business.

A Keyman Insurance is also used to buy out the shares of the deceased partner, allowing the surviving partner(s) continue the business.

Arrange a Free Consultation or Read the following blog posts to know more about KeyMan Insurance;

Is Keyman Insurance expensive?

KeyMan Insurance is very affordable, typically the annual premium is much less than 1.00% of the cover amount. Depending on the age, lifestyle and health condition of the insured, it can be higher or lower as well.

How long does a keyMan Insurance last for?

The term of the policy depends on various factors like the age of the key person/Partners and the personal choice of the stakeholders of the company.

It can be availed for a term between 5 years and Whole life of the insured.

How can the Insurance be used in the event of claim?

The Insurance proceeds are typically used for the following;

Pay off the liabilities of the firm to banks, suppliers and other debtors to ensure adequate liquidity in the business
To buy out the shares of the deceased partner without affecting the business cashflows
To mitigate the loss of revenue/profits due to the Death or Critical illness to a Key person or Partner.

How long does it take for payout in the event of a claim?

It usually takes 1 - 6 weeks working weeks after submission of the claims form and the relevant documents to process and payout a claim.

KeyMan Insurance

Protecting Business Continuity