Answered by Andrew Jenkinson
Key person insurance is designed to pay a lump sum to the business on the death or diagnosis of a critical illness of a certain vital member of staff.
It is important to recognise this is a policy a business takes out to protect it’s future profits and success of the company, the key person in question pays no premium and receives no benefit should such events arise.
Since the policy is set up on the life of another with the business paying the insurance premiums and any benefit payable being paid to the business the policy should not be set-up in trust.
Frequently Asked Employee Benefits Questions
Oliver did an excellent job in making the right recommendations. He's been very patient in dealing with my request and helping me choose the right product. Well done and thanks very much!
Josh did a great job. Did all the legwork for me in getting the best quote and even handed it over to someone else whilst he was away, then finished the whole thing once he was back – impressed!
Josh was very good at communicating about different options for Life insurance, advising us on right choice and benefits. I would strongly recommend Drewberry. Thank you Josh.