Key Person ProtectionKey Person
Companies often have a number of key individuals whose death or inability to work due to critical illness could understandably cause the company to suffer. By correctly identifying these people and insuring their contribution to the company’s success we can potentially avoid the following financial pressures, should the worst happen:
- Replace income
Cover ongoing salary and dividend payments, should profitability be impacted.
- Repay debt
Pay off borrowings to reduce the company’s outgoings.
- Hire a replacement.
Provide funding for a replacement employees, including their initial salary.
If you have key employees whose absence would impact the running of the company or ongoing profitability a lump sum payment can provide additional security and can be used for a variety of purposes. Mattioli Woods is able to provide clarity around this along with suitable levels of cover for the company. We help clients understand the specific requirements when writing key person cover including:Ongoing reviews
of short term assurance ensuring that levels remain appropriate for the company.Company tax relief
guidance and how this can ensure tax efficient protection is in place for the company.Guidance
as to who is a key person to help insure the correct team members to protect the company going forward.