I’m Confused.com:
Can I get life insurance that includes key person cover?

Question:  Can we can get a life insurance policy which includes a “key person” cover as we own a business and my husband is the CEO/creative director. I’m looking for a policy to cover us, but it’s very confusing.

Answer:  Some providers offer life insurance policies aimed at protecting businesses against the loss of the people who are most vital to the firm’s survival. These are marketed directly to companies, and are not generally sold alongside the types of policies suitable for families.

To find the right “key person” cover, you could search for a provider online or talk to a company which specialises in business insurance. Alternatively, you could take out a standard personal life insurance policy for your husband, but select a level of cover that you think appropriate given his importance to your company – taking into account the potential business losses that would result from his death.

There may be tax advantages to taking the policy out on the company’s behalf, however, so I would recommend talking to your accountant beforehand.

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