It comes in many forms; its aim is to pay out an agreed amount to your loved ones in the event of your death.
What is it?
Keyperson (or Keyman as it has always been known), is a policy which protects your company should you lose a key worker due to illness or death. Many companies’ futures are tied up by a few key individuals who bring in the contracts and close the deals that keep the business ticking over.
Should you lose a key worker due to illness or injury your company’s future is threatened. The plan will help to cover the financial loss to the company and with some providers, give you access to a business substitutes bench to keep you going. They will help find a temporary well trained and suitable replacement within 48 hours. If your company needs to then find a full time member of staff, the insurer is there to help.
Do I need it?
Who are the people in your company that drive the business forward? Do you have a visionary Director whose last idea brought in record profits for your company? Is it your top salesman who by breaking targets has kept your company going?
Now what happens if your salesman phones in sick and it is serious, who can cover his sales? Sure you have really good people but would/could they close the deals that he could? What impact would that have on your company?
One contract may bring in enough work for the factory for a whole year; all of these people are now put at risk. Your company is now at risk.
According to a recent industry survey, 61% of companies would fold within 6 months if the company lost a keyworker or Director. 70% of companies would lose income if a key worker is off sick.
- Can your business afford to cope without business protection?
- Who are your key workers?
How does it work?
When a key worker dies or becomes ill, it can have a massive knock on effect for your company. Profits fall and the remaining staff have had to double their workloads to cope.
Keyman insurance is designed to take that financial concern away. A lump sum would be paid to your business to cover the loss in profits and allow you to take time out of the office to hire a replacement. The benefit of this is your company does not lose valuable time or profit when tragedy strikes. Your Proadvice adviser will help you decide who your keyworkers are and how much they should be insured for. With regular reviews we can ensure your business is always protected no matter what happens.
12% of businesses would fail within the first year following the death of a keyworker and another 26% would not last a full year. That is 38% of businesses that would fail before 12 months.
A staggering 6 out of 10 businesses have no protection insurance at all for their keyworkers. There clearly is a need for it so why don’t more businesses protect themselves? We believe it is due to the fact they have not had any good advice, which is what we are here to do.
Which category do you fall into?
- 19% of businesses believe insurance is too expensive. However, wouldn’t you agree that protecting your business from failure is worth significantly more than the monthly premium you may be saving? Proadvice can find you the most tax efficient policy on the market.
- 6% of companies never even considered it. By speaking with one of our Proadvice advisers, we can highlight potential gaps in your cover which you should consider.
- 24% of businesses just don’t have the time or are too busy to evaluate their needs. At Proadvice we are flexible to ensure we are available at a time to suit you. As we are online Protection Specialists; we deal with you over the phone or by email rather than meeting face to face, which is more convenient to you.