Key Persons Cover
A conversation that I often have with business owners, is about key persons cover. What do I mean by this ? Well a ‘key person’ is a person that is really key or intrinsic to an organisation, such as a sales director.
I often ask my clients what they would do if a key person were to die or were to suffer a serious illness. For example, in the case of a sales director, they may be the person who drives all the sales of a business or holds all the contacts. If they died or were unable to work, this could have a massive impact on the sales and profits of the business. This is where I would highly recommend key persons cover which is a plan to protect profits.
Key person cover is straightforward to put into place and could be life insurance, critical illness cover or a mixture of both. A Company can pay for the cover and then if a key person were to die or suffer a serious illness, the business would receive a cash injection of money.
A business can choose what they would like to do with this cash injection e.g they may wish to put it towards recruiting someone else, they may want to pay off debts with the money or they may wish to put some cash in the bank, to stabalise the business.
So if you have a key person within your business, or you don’t know whether you have one or not, I am quite happy to visit you and have a discussion at no charge.
Need expert mortgage and protection advice ? Better Call Paul !