Anyone whose absence would have a significant negative impact on the company’s revenue. This typically includes founders, directors, key technical experts, or top sales producers.
In every successful organization, there are individuals whose expertise, leadership, or unique skills are fundamental to the company’s profitability. Keyman Insurance (also known as Key Person Insurance) is a life insurance policy taken out by a business on the life of its most crucial employees. It acts as a financial cushion, ensuring that the sudden loss of a key contributor doesn’t lead to the collapse of the business.
Protect the human capital that drives your business success and ensure continuity during a leadership crisis.
The loss of a “Key Person”—whether it’s the CEO, a lead developer, or a top-tier sales executive—can cause immediate financial strain. It can lead to a loss of investor confidence, disruption in operations, and the high cost of recruiting a suitable successor. Keyman Insurance provides the business with a tax-free death benefit, giving the company the liquidity it needs to settle debts, manage daily expenses, and fund the search for new talent without compromising its future.
Anyone whose absence would have a significant negative impact on the company’s revenue. This typically includes founders, directors, key technical experts, or top sales producers.
Yes, in many jurisdictions, the premiums paid by the company for Keyman Insurance are considered a legitimate business expense and are tax-deductible.
The business has a few options: they can let the policy lapse, transfer the policy to the employee as part of a severance package, or continue paying the premium (with the employee's consent).