A business is only as good as its employees. Key Person Assurance is a life assurance policy taken out by the company on behalf of a key employee. Many businesses have key employees whose knowledge, experience, skills or leadership largely contribute to the continued financial success of a business.
The absence of key employees due to death or illness will negatively impact the business and may result in increased workload, recruitment costs, wasted time and reduced sales.
The policy safeguards a business from the financial impact caused by the death or serious illness of a key employee. In such circumstances, the business can use the policy money to protect profit and cover the costs of recruitment of a new staff member.