Key Person Life Insurance
Key person insurance is a type of business insurance in Ireland that provides financial protection to a company in the event that a key employee or executive becomes unable to work due to injury, illness, or death. The policy provides a pay out that can be used to replace the lost revenue or profits that he key person would have generated for the business.
Key person insurance can also be suitable for sole traders as it can protect the business from financial losses in case the key person (such as the owner) becomes incapacitated or passes away. It can help cover expenses related to finding and training a replacement, paying off debts, and maintaining the business during a difficult time.
Partnership Insurance covers those who have entered into a partnership to run a business or for those who act as co-directors and shareholders in a private limited company. In these set ups a sudden death can cause immediate financial problems for the business and surviving partners.
Depending on how the partnership/business is structured there may be an agreement in place on how the shares of the business are to be treated when a member of the partnership passes away. To ensure that funds are available to fulfil the requirements of the agreement partnership insurance or co-directors’ insurance can be but in place. This cover can also be tailored to fit the agreement already in place and provides a lump sum for payment.
If you are looking to provide additional benefits for your staff to protect them and their families while also protecting your business, you may want to investigate providing life cover or income protection benefits. As a business you can set up life cover policies for staff members in a tax efficient manner to ensure that in the event of an employee’s death, a lump sum is paid to their family. This is a great way to ensure that in the worst-case scenario your employees know their families are cared for.
Alternatively, you may be worried about a staff member being unable to work due to illness or injury. To help reduce the burden on your business to pay their salary over this period in full or to provide an additional cover for the staff member we can assist in the setting up of an income protection policy. When set up for a business in a tax efficient manner the policy will pay a portion of the employee’s salary until they are fit to return to work or until their cover ends. These plans can be tailored to meet the needs of your business and fit in with your long-term absence policy to ensure it provides the most value.
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