Key Man

Specialised type of life insurance policy

What Is Key Man insurance ?

Key Man insurance, also known as key person insurance or key employee insurance, is a specialised type of life insurance policy designed to protect a business from the financial impact of losing a crucial employee, typically someone with specialised skills, knowledge, or expertise that contributes significantly to the company's success.

Benefits of a Key Man Insurance

Financial Protection

Key Man insurance provides financial protection for the business in the event of the key employee's death or permanent disability. The payout from the policy can be used to cover lost profits, recruit and train a replacement, or pay off outstanding debts, allowing the business to continue operations with minimal disruption.

Business Continuity

Losing a key employee can disrupt business operations and affect the company's growth trajectory. Key Man insurance ensures the business has the necessary funds to maintain operations, fulfil contractual obligations, and stabilise during a challenging transition period.

Attract and Retain Talent

A Key Man insurance policy demonstrates the company's commitment to its employees and their importance to the organisation. This can help the business attract and retain top talent, as well as improve overall employee morale and satisfaction.

Loan Collateral

Organisations may require a Key Man insurance policy as collateral for business loans. Having this insurance in place can increase the likelihood of securing financing for business growth and expansion.

Tax benefits

Depending on the jurisdiction and specific policy structure, the premiums paid for Key Man insurance may be tax-deductible as a business expense. This can help reduce the company's tax liability and improve its overall financial health.

Estate Planning

In the case of family-owned or closely-held businesses, Key Man insurance can play an essential role in estate planning. The proceeds from the policy can be used to buy out the key employee's shares, ensuring a smooth transition of ownership and preventing potential conflicts among remaining shareholders or family members.

What other clients also insured

Income Protection

Income Protection is a way of securing your financial security in the wake of not being able to earn due to accident, unemployment or illness.

Medical Aid

Our medical aid plans cover all your approved chronic medication, certain health checks, and emergency visits.

Funeral

Funeral Cover is a type of life insurance that allows you to cover the costs of burial services for you or a loved one.