Key Man Insurance
Keyman Insurance policies fall into 3 categories:
- Revenue protection
- Capital protection, and
- Buy sell insurance
Revenue protection is designed to ensure any loss of revenue accrued through the unexpected loss of a key member of a business is compensated up until the time a suitable replacement is found and business may proceed as normal.
Capital protection provides cover for the key person of a business who acts as the business guarantors. This ultimately means that the remaining partners or shareholders will be provided with access to the necessary funds to repay any outstanding business loans should the guarantor be unable to provide collateral due to ill health or death.
Buy Sell Insurance provides the remaining shareholders or partners with the ability to buy out the shares of the key employee should they no longer be able to continue in the business as a result of unexpected death or injury.
