Providing appropriate premiums for key persons that assist you in running your business helps protect the future of the company. This is done by acquiring insurance that compensates for potential financial losses that could arise from the death or total and permanent disability of key persons, and which also limits business disruption.
These key persons may be your Shareholders, Partners, Chief Executive Officer,
Chief Operations Officer, Chief Financial Officer or Chief Marketing Officer.
As an employer, you can consider two key areas to ensure the steps you take are able to keep your business protected:
- Setting aside a monthly sum in the form of a gratuity plan that will pay out at the end of (i) a contractual term (ii) performance based term or (iii) length of service
- Providing for the key employee’s loved ones through a substantial sum assured benefits plan should a key employee pass away
We are happy to assist you in stipulating the conditions of a policy with regards to a key person (e.g. Policy must not have riders, policy cannot be assigned, etc), explain the financial and business benefits of providing adequate coverage for these key persons, and more.
Let us know how we can help you.