Key Person Insurance

Key Person Insurance can mitigate the pain of losing a key individual and provide stability for your business

You’re the founder of your organisation. You are directly responsible for the income of your businesss and a number of your employees. Would the business survive without you? 

Key person insurance is a form of Life Insurance. It protects a business against the potential financial loss of losing a key individual through death, critical illness or terminal illness. Should something happen to a key individual, the policy will pay a lump sum to the business.

Bigmore Benefits believe Key Person Insurance should be specific for your company’s needs. This includes who should be covered and the level of that cover. It can be complicated to calculate this but Bigmore Benefits can help. 

Meet with Our Team for a FREE no obligation quote tailored to the individual/s you’re looking to protect.
Key Person Insurance

Why Businesses Need It

The loss of a key employees can be devastating for a company. In the worst case scenario, it can turn a successful company into a failing one. For example, 70% of businesses stop trading within 5 years on the unexpected loss of a founder.

The percentage of companies that have Key Person Insurance is actually small. But a recent survey by Legal and general highlighted 95% of businesses have at least one key individual that the business mostly depends on for its main source of income. However the majority of those companies had no contingency plans in place to deal with the death or serious illness of that individual.

Key Person Insurance helps protect the company from financial loss in the event of losing a key employee through death, critical illness or terminal illness. It provides peace of mind that your business can continue to operate and indirectly protects the livelihoods of your employees as their jobs may be jeopardised should something happen to a key individual 

What We Consider

At Bigmore Benefits part of our objective is to obtain as much important information from you, so we can assist you to make the right decision for your company. Here are some of the main considerations we will discuss, when helping you reach a decision:

With the Product

  • How will the Key Person Insurance be calculated? The four main ways to calculate include: Multiple of individuals salary, multiple of profits, proportion of payroll, an actual impact method.
  • Would you like the premium guaranteed or reviewable?
  • Do you want stand-alone Life cover for the company or an additional critical illness element to the cover?

With the Client

  • Who do you wish to cover in the business and what is their position?
  • What is your budget?
  • Do the individual/s own a share in the business?
  • Have you considered a report from your company accountant or Financial Director to qualify an accurate potential loss?
  • What are the problems you would encounter in the event of losing the key individual/s?
  • What would be the direct financial loss in the event of losing the key individual/s?
  • What would be the indirect financial loss in the event of losing the key individual/s? (i.e. Recruitment and training of a new person).
  • How long do you wish to cover the individual for?
  • What are the growth plans for your business and do you want the policy to move in line with this?

Our Process

Consult

We will have an initial meeting to discuss your requirements

Quote the Market

We find the most suitable product(s) within your budget

Report and Recommendations

When we report our findings, including a full recommendation outlining our rationale.

Full Implementation

We implement the scheme and provide comprehensive communications to your employees so they fully value the benefit.

Ongoing Support

We provide ongoing support to you and your employees.

Contact Us

Book a discovery call with Bigmore Benefits for your free no obligation quote.
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