Keyman insurance is taken by a company on the life of a person whose absence would materially damage it — a founder, a technical lead, a rainmaker. The company owns the policy, pays the premium and receives the benefit.
The payout buys the business time: to stabilise, to recruit, to reassure lenders and customers while the gap is filled.
Who needs this cover
- Companies dependent on a founder or key executive
- Businesses with concentrated technical or client relationships
- Firms with loan covenants tied to key management
Key benefits
- Cash injection to the business when a key person is lost
- Supports lender and investor confidence
- Funds recruitment and transition costs
- Premiums may be treated as a business expense, subject to prevailing tax rules
What is typically covered
- Death benefit paid to the company
- Optional critical illness or disability riders
Eligibility
- The company must demonstrate insurable interest in the individual
- Cover is justified against the person's financial contribution
Key exclusions and limitations
- Standard life insurance exclusions apply
- Cover may be reduced if the insurable interest ceases
Exclusions differ between insurers and product variants. Always read the policy wording for the exact list.
Claim information
The company files the claim as the policyholder. We help assemble the corporate documentation alongside the standard life claim requirements.