Key person cover is a short term insurance policy that is taken out by a business on the life of a key employee. It is also possible for the policy to pay out in the event of the key person being diagnosed with a specified critical illness such as cancer or heart attack; should the key person die or suffer from a critical illness the policy would pay out a lump sum to the business.
If you are a top producer or someone who holds a lot of the goodwill in a business you should consider taking out key person cover.
Proceeds coming from a key person cover payout are typically tax free and can be used to replace lost trading profits, find a suitable replacement and train them up.
You might also want to read about Shareholder Protection, a type of protection closely related to Key Person Cover.
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Perhaps the most important advice I give to my clients is to plan carefully and do not leave things to chance. My job is to help you grow and protect your assets by providing the knowhow you need to make informed decisions about your future. My job is to help you grow and protect your assets by providing the knowhow you need to make informed decisions about your future. I then help you implement the strategy into a reality. I will work with you over the long term, helping you to build, brick by brick, a successful and robust financial situation.
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