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Keyman Insurance, Key Man Insurance, Keyman Insurance UK
0116 366 6866
Introducers
An Explanation on Key Man Insurance - By Halo Consulting
Keyman Insurance – protection from the loss of key people Keyman Insurance protects your company from the loss of an important, ‘key’ person in your business. Like Shareholder Protection, it’s another form of life insurance in a fancy wrapper. If an important person in your business were to die, a cash lump sum would be paid to your company. Some policies may also compensate your business should one of your key people fall sick. Most importantly, you could avoid potential damage or risk to your company because, nancially, you can move forward with your business without having to rely on the loss of an important person. The loss of a key person can be catastrophic due to their level of knowledge, contacts and expertise. Who are the most important ‘key’ people in your business? How integral to your business is your Managing Director?
Without their vast knowledge, experience and important contacts, the https://halo-consult.co.uk/business-insurance/keyman-insurance/
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business could struggle. Do you have a star salesman who brings in high levels of business?
Without their leads and sales, your pro t margin could take a direct hit. Do you rely on a highly-skilled engineer to manage your machinery?
In their absence, business-critical operations could halt. Do you have an IT Manager or Developer who looks after your systems?
IT systems underpin many business functions, which could su er in their absence. Do you work closely with a Finance Manager or Financial Controller?
Without their advice and expertise, big decisions may become riskier. Without Keyman Insurance, you could face nancial pressures, reduced cash ow and even a loss of customers. By putting in place protection to safeguard against the loss of the most important people in your company, you can rest assured that your business will be robust enough to stand the impact. For more information on Keyman Insurance, please call us on 0116 366 6866 or email: info@halo-consult.co.uk
What is a ‘key man’ policy and who can take this out? To protect a company from the loss or absence of a ‘key’ man or woman in their business, this form of insurance can be taken out by any company.
Does the company own the policy?
Yes, the business would own this type of policy.
Does the company pay for the policy? Yes, policy premiums would be paid by the business and can also be o set against corporation tax.
How much does Keyman Insurance cost?
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For an accurate quote you would need to contact us – usually, policies are priced depending on the amount insured and the term, as well as age and smoking status.
What is the length of this policy?
From 1-55 years – we strongly advise reviewing assured sums assured regularly to make sure the cover is aligned with your business.
Does it take a long time to set up a Keyman policy?
Usually, we can arrange cover fairly quickly – however, it may take longer if you require a higher level of cover. Sometimes, to justify the insured sum, the insured may need nancial underwriting or they may need to undergo a medical.
Does the company need to be U.K.-based to take out the cover?
Yes, a Keyman policy can only be taken out for a company based in the U.K.
How do I know what amount to insure the ‘key man’ for?
As every company is di erent, here at Halo Consulting, our trained advisers will be able to analyse all information given to us, which will allow us to put forward a solution to meet your needs.
Are Keyman policy premiums tax deductible?
Yes, you can o set premiums against corporation tax. We strongly advise speaking to your nancial adviser and your accountant about this.
Instead of a lump sum, could we take an income?
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Sometimes, the sum can be paid as a monthly gure instead. However, usually, money is transferred as a lump sum. We strongly advise speaking to your nancial adviser for further guidance.
What other bene ts can be added to the policy? Bene ts such as Critical Illness, Waiver of Premium and Indexation can be added on to Key Man Insurance.
Do we need to send out medical information?
Insurers will need all insured persons to complete a medical questionnaire (the same as any life insurance policy). Plus, further information may need to be gathered from their GP.
What can we use the cash for when a policy pays out? Paid directly to the business, the sum assured would be used how the business chooses. It could be used to recruit a replacement if the key man or woman has died or temporary sta until they are well enough to return to work.
What about inheritance tax – how is this a ected?
A Keyman Insurance policy could increase the value of the business due to the sum of money received, as well as the value of shares held by the individual. In turn – this could increase Inheritance Tax liability due to the increased value of the estate, especially if the key man or woman is a director or shareholder.
What de nes the term ‘key person’? Any important person in your business – a ‘key man’ is someone who would have a nancial impact on your business if they were not able to work due to a serious illness or death.
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What is the di erence between Life/Critical Illness cover and Keyman Insurance?
Life or Life & Critical Illness policies are similar types of products, but are taken out by an individual to bene t them or their family. Keyman Insurance is a speci c type of Life or Life & Critical Illness policy, which is taken out by a company with the aim of providing nancial support to the business should the key man or woman die or su er a serious illness and is unable to work.
Why is this cost-e ective for companies? Losing a ‘key person’ could have a large impact on your business. Compared to the nancial repercussions of such an impact, the cost of this insurance could be minimal. Please speak to one of our team of advisers for a quote.
What does the term ‘Anderson rules’ mean?
The ‘Anderson Rule’ applies to how the proceeds of Keyman Insurance are treated for tax purposes and due to the fact that every case is di erent. We strongly advise speaking to one of our advisers about your speci c case.
How can a company assign a policy to a ‘key man’? Usually the change to a policy is done through a “Deed of Assignment”. You would need this to be written up by a solicitor for legal purposes.
Keyman Insurance – Overview Keyman or ‘key person’ Insurance is an important type of business insurance. It is taken out by a business to compensate for nancial losses incurred by that business as a result of losing a ‘key’ man or woman due to death or a https://halo-consult.co.uk/business-insurance/keyman-insurance/
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Critical Illness. The insured funds can be used to help the business nancially whilst dealing with the loss of a ‘key person’. Disclaimer This information does not constitute nancial or any other form of professional advice. Should you require advice, please contact us directly on 0116 366 6866. It is important to ensure any insurance policy you take out is suitable for your needs.
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5.00 Average 28 Reviews
Skye Da Silva
Tracey Kitchen has always provided an outstanding service! She is highly professional and has always kept me updated in regards to my plan. Tracey is always there for any questions I may have and has always managed to get back to me in a timely manner. There is a personal element to her service which for me goes a long way.. I couldn't recommend her enough! Thank you Tracey. Posted 1 week ago
Fayzeh
I spoke to Tracey, she was very attentive to my needs and explained all the options very clearly. She always came back promptly whether via telephone call or email. Great cusromer service! Posted 1 week ago
Vik
Tracey was very efficient and knowledgeable. Posted 1 week ago
Lynne
A wonderful company to deal with. Tracey is so helpful and knowledgeable. Nothing is too much trouble and you feel that if you have any queries, issues, etc. she will go out of her way to try solve them. Halo Consulting deal with my Medical Aid, which is important in making me feel secure and confident in the knowledge that they are
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