Key Man Assurance Plan
Our Key Man Insurance is a life insurance cover under a suitable plan of assurance effected by the company to compensate for the financial loss suffered following the death of a key member or staff of the organization.
- Plan may be arranged to cover personal accident, in this case, the amount of benefits payable will be Personal Accident cover also provides settlement of the outstanding balance on your finance agreement (subject to a maximum of 20m) in the event of serious accidental injury.
- Sum assured is 2 times average the net earning if plan is arranged to cover business loss/loss of profit.
- No medical is required for sums insured up to 10m.
- For Cover above 10m, a simple proposal form is required. (financial and medical questionnaire).
- The maximum insurable age is 65 years while the minimum is 22 years.
- The shortest term in the keyman plan is 1 year, the longest is 10 years,
- The required sum assured will exceed ten times the keyman’s salary (including bonuses, basic salary, and other fringe allowances) or 50m maximum.
Purpose of cover
- It provides a financial cushion to the company for:
- The loss of customers or sales affected by the keyman’s ability and personality.
- The loss of day-to-day specialised skills.
- The cost of recruiting and training a suitable replacement.
- Delay or cancellation of any business project that the keyman is working in.
- The loss of opportunity to expand in the future.
- The loss of stable management and good labour relations.
- Reduction of credit worthiness – recall of loans guaranteed by the keyman.
- A requirement to purchase the deceased director’s shares.