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Key person or loan cover

Most companies will have insured their buildings, contents, vehicles and even their data, but have they insured against losing one of their most valuable assets - their people? Losing the people who run the business and whose experience, knowledge and contacts are relied on to make it profitable could have the most devastating effect on the business. Whilst nothing can make up for the sense of loss when a key team member is suddenly taken from the team, insurance can certainly help a business survive the financial effects.

Key facts:

  • Key person cover protects the business against loss of profits due to the illness or death of a key team member.
  • It is suitable for all sizes of business, including sole traders.
  • Loan cover provides funds to repay the loan if something happens to a key person or guarantor.
  • The business (limited company or limited liability partnership) owns the policy.
  • The key people or guarantors are the lives assured.
  • These types of cover do not need to be written in trust.
  • Tax relief may be available on the premiums for key person cover.

Tools and literature

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Financial Adviser Verification