Keyman Insurance

Keyman insurance ensures that your company will continue to operate profitably in the event of a key person's death, being declared totally and Permanently Disabled (TPD) or being diagnosed of a Trauma event as described in the insurance policy.

The benefit is paid as a lump sum and the business will use the proceeds to repay liabilities or meet cash flow and recruitment costs whilst the key person recovers.

There are two types of key person insurance: Capital and Income. Capital to repay loans etc. and Income to meet the costs of recruitment etc. The tax treatment of the premiums and benefits are different and advice must be sought to correctly structure the policy.