Key person cover

Your people are the heart of your business. For small businesses, where everyone strives to bring in work and revenue, every person can be critical to your success. If someone falls ill you may no longer be able to deliver on projects or take on new customers and your turnover could fall rapidly.

Even major corporations have a few people who hold the business together - public faces the customers adore, organisational masterminds who understand all the inner workings, creative prodigies who drive the innovation. The people everyone thinks of as 'irreplaceable'.

So what if something happens to one of these key people – if they fall sick, get injured, or even die? What will it do to your business?

A sound company will survive their loss, but only with careful planning – and money. A lump sum payout under your key person insurance can give you the resources to keep your business going through the aftermath.

For small businesses, this might mean paying off business debts, bringing in someone to help you keep on top of the workload until your key person can get back to work, or even finding a permanent replacement. For bigger companies, perhaps you'll need to hire in expensive new 'talent', or run a media campaign to boost consumer confidence until you can prove your business is just as sound without them.

Key person insurance can be bundled with any other business life insurance to provide a comprehensive package. Our life insurance specialists can answer all your questions about the business life insurance products on offer and help you understand and compare your options.

Key Person Insurance Case Study

Insuring against the unexpected

Neville, a 57-year-old printer, had been running the family-owned business for nearly 20 years. He had just taken out a large business loan to finance the purchase of a high-tech printer when he began to feel seriously ill.

Neville had never smoked so the diagnosis of lung cancer was extremely unexpected. The cancer was aggressive and Neville had to have a lung removed and spend a long period in hospital and rehabilitation. The operation put an end to Neville's working life and left the family business in serious jeopardy.

Fortunately, the business had taken out key person insurance on Neville, which included 'own occupation' TPD clauses. This enabled them to pay off the equipment loan, which meant the business could afford a replacement printer to take over Neville's work. With no loan to pay off the business generated enough income for Neville and his family to live comfortably despite his disability.