Key Person

Key Person Cover

Being part of a successful company means overcoming constant challenges. When things go well thanks to the skills and efforts of you and your key team it can be very rewarding. However if something goes wrong, for example if you or any of your key people die or suffer from a serious illness, financial security can be compromised.

The death or serious illness of a key person in your company, or business, could also threaten everything you have worked so hard to achieve.

Doesn't it make good business sense to treat it as you would any other risk and put plans in place to help protect the business? What financial solutions could you put in place to protect this eventuality?

Solution: This is driven via an insurance plan which pays the firm a lump sum benefit in the event that the worst happens to one of the controlling directors or key staff members. This can provide a vital financial buffer in the event of an unforeseen event and can protect firms to re-group after a crisis. Key person insurance won't cure a person's illness; however it will make the financial future of a company far more secure.

Shareholder Protection

The controlling directors of your business are its driving force and the foundations for its success. So what would happen if one of them were no longer there?

Imagine that the shares of one of your controlling directors ended up in the hands of someone you didn't know and who doesn't know your business. This could be exactly what happens if one of your controlling directors becomes seriously ill or dies - their share in the business could pass to someone else through either sale or inheritance.

Solution: The solution is provided through a plan and a set of agreements which we set up for our clients. It is a legal framework which protects the company in the event a shareholder dies, or suffers from a serious illness. By taking out these plans on the life of each of the controlling directors and putting them in trust for all the other controlling directors, they will receive a cash sum when they need it. This can avoid very complex and unpleasant negotiations with families in the event the worst happens.