Key Person Insurance protects a business against the financial impact of losing an individual whose skills, knowledge, or leadership are critical to its success. This could be a founder, director, top salesperson, or anyone whose absence would significantly affect profits or operations.

The process begins by identifying these key individuals, calculating an appropriate sum assured based on the potential loss to the business, and structuring the policy as tax-efficiently as possible.

If a key person dies or suffers a critical illness, the policy provides a cash injection to cover lost revenue, recruit and train replacements, and maintain business stability during the transition. This ensures the company can continue operating with confidence despite the loss of a vital team member.