Every business has got to see the need for life insurance. If you aren’t already using Keyman Life Insurance, it is in your company’s best interests to take the time and read on. It could be time better spent than you think.

It is an old clich, but a true one nevertheless, that one of the most essential elements in the success of any business is the quality of people working within it. However much the nature of business life changes, this won’t.

And this statement is especially valid when you are considering small businesses. In the UK, there are about 4 million businesses which have only up to 4 employees. In fact, just over 95% of all UK businesses have fewer than 10 workers. These organisations, especially, should be actively contemplating Keyman insurance policies, especially Keyman life insurance.

As a business owner you probably already know which people within the business constitute what is know as a key person. These are generally the people within the business that generate the sales or without whom the business just ceases to exist.

Keyman insurance is imperative for people such as this. Keyman insurance can prevent the nightmare scenario of the collapse of your business because of the prolonged absence or even, though we might not want to contemplate it, the death of someone who is central to our success and well-being.

Keyman can provide financial cover for the absence of a staff member, whether for a prolonged period of time or, in the case of death, permanently, whilst you are left the time to concentrate on the important need of continuing to run your business and even looking for replacement staff where necessary.

Keyman can provide you with much more than just individual employee cover. If a partner or stakeholder dies, you may find yourself faced with the option of either having to buy the remainder of your business from the family members or having to sell the company. Just because the shareholder was committed to the company does not mean that his or her family necessarily feels the same way. Few people would be independently capable of having that sort of capital at their disposal, which is where Keyman can help. We can help provide the capital to keep you in business, regardless of extraneous circumstances. That alone should be enough to alleviate some of the pressure of running your business.

Also the death of a guarantor can be equally drastic. If you find yourself suddenly having to pay of a large business loan when you least expect it, Keyman can provide a policy which will help to rectify an otherwise impossible situation.

As you can see, essentially, Keyman insurance operates in exactly the same manner as a conventional life insurance policy but with the significant difference being that, on the death of the insured, the proceeds of the policy are paid out to the company instead of the deceased’s family. Nowadays, most leading UK insurance companies offer some kind of Keyman insurance within their life and critical illness portfolios. It could even be that you could claim tax relief on premiums paid into this kind of policy.

So in summary protecting your business should be one of the most important things on your mind whether you are a sole trader a partnership or even and Ltd company arranging some keyman insurance will make sure that catastrophic does not effect the business financially.

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