Although similar to Relevant Life Insurance in that the company pays the premium, with Keyman Life Insurance the payout goes to the company rather than the insured’s family. This provides small businesses with vital insurance designed to mitigate the financial loss of a key member of staff, be that a director or specialist within the firm.
Having Keyman Life Insurance in place provides a level of breathing space, granting the firm a financial cushion during a difficult time so it can adapt. The benefit can also be used to train existing staff into a new role, or for the costs associated with recruiting a replacement.
Keyman cover is relatively inexpensive and usually pretty straightforward to set up. You can also take out Critical Illness Cover too, so if your key member of staff were to experience a serious illness the company would again be financially protected.