Key Man Insurance

One vital, and often overlooked product is Key Man (or Woman) Insurance.

We all know them, the Managing Director/Owner of the small business who is overworked and under pressure. What happens if he succumbs to the pressure of the role and falls ill, unable to work for maybe months? How does his business cope? More information here...

Well, there is a solution, and it is not expensive - it is Key Man Insurance. A Policy covering the MDO, and any other Key People in his organisation is likely to cost less than a good night out for the monthly premium which would produce a capital sum in the case of an insured event occurring. Thus for £40 per month your average MDO of 45 would be in line for a payout of £500,000 should he be prevented from working by accident or illness.

The £500,000 is protection not only for the business but also for his family and the value of the assets he has built up over the years.

Such a sum would allow him to still draw a salary whilst also paying for an Interim Manager, until he gets better; and also allows time for consideration of the options available should he be prevented from working again, and thus avoids a Fire Sale.

As a part of the Risk Analysis Support2business Ltd conduct during their Funding Exercise, Key Man Insurance is a very cost effective way to minimise the risk for the individual, business and family. It forms a part of best advice and we know, from our own experience, that far too few MDOs actually bother or have heard of its benefits.