What is Keyman Insurance?
It is insurance that pays out a lump sum or income to the company in the event of a key employee falling seriously ill or dying. This allows the company some financial breathing space while they struggle to replace that key worker’s skills, workload and contacts.
What is shareholder protection?
It is insurance that normally pays out a lump sum if a shareholder dies or has a critical illness. The lump sum is given to the critically ill shareholder or his estate in the event of death in return for his shareholding. This is normally underpinned by an agreement that compels both parties to act except in the case of critical illness where it may be left to the ill person to decide when to relinquish his or her shares.
What other insurance should also be considered?
Companies are well placed to provide corporate benefits to all or some of their employees. This protects the individual and the company if things go wrong and undoubtedly demonstrates to the employee that the company has considered their welfare. Such benefits could include.
- Group life cover
- Group critical illness cover
- Group income protection
- Group medical cover
These obviously can form part of a larger employee benefits package that might include car allowances, pension schemes etc.
Do we really need this cover?
Whether your company is large or small you should consider the following questions:
How would it hurt the company financially if key personnel became seriously ill or died?
Could the company afford to support employees or their families if that employee died or became too ill to work?
Would the company have sufficient funds to compensate a shareholder fully if they or their family wished to cash in on their shares in the event of serious illness or death?
A properly thought out business protection package can ensure that these issues are satisfactorily covered.
How much does it cost?
This varies according to age, health, sex, occupation and type of cover. We can help you establish what the priorities are and what budget is available and help you use that budget as prudently as possible.
Please contact us to see if we can help on 020 7580 1555 or by using our contact form.