What is Key person life insurance for?

If the main team member of a firm unexpectedly disappeared, can the company survive? It's definitely not something you'd like to hear about. But sudden death or long-term absence may have a major effect on the future of your company. You ought to plan for the worst-case situation – and the easiest way to do so is to invest in the keyman insurance business.

Keyman insurance is a scheme paid out by a corporation to insure its most important workers. It helps to think of it as a life and vital condition shield for people who are crucial to the company's growth – whether it's the CEO, your biggest seller, or someone with a specific skill set.

If either of these key individuals unexpectedly die or fall ill, a keyman insurance scheme will cover your company from financial implications. A lump sum is paid immediately to the company and can be used to offset the cost of the loss of sales, substitution or redemption of the loan. It's going to keep you afloat during a tough period.