Keyman Insurance Plan
Protect your business from the financial impact of losing critical employees with comprehensive keyman coverage.
What is Keyman Insurance Plan?
Protect your business from key person loss
A Keyman insurance plan is a type of life insurance policy that a company purchases on the life of a critical employee, typically someone whose loss would significantly impact the business. The company pays the premiums and is the beneficiary of the policy.
This plan mitigates financial risks associated with losing a key person and provides financial support to the company in case of the key person's death or disability. It helps maintain business operations and stability during challenging times. Premiums paid may be tax-deductible as a business expense.
This plan pays a lump sum amount to the company if the key person passes away and provides financial support if the key person becomes disabled. It helps to repay outstanding loans if the key person is no longer able to contribute. When considering a Keyman insurance plan, it's essential to determine the coverage amount, policy term, and premium affordability. Companies should also evaluate the tax implications and ensure compliance with relevant regulations.
Key Features:
- Coverage for critical employees
- Company is the beneficiary
- Death & disability coverage
- Tax-deductible premiums
- Business continuity protection
- Loan repayment support
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What is Keyman Insurance?
A life insurance policy taken by a company on the life of a key employee.
Who is a keyman?
An employee critical to business operations.
Who pays the premium?
The company.
Who receives the benefit?
The company.
What is covered?
Death of the key person.
What is the purpose?
To compensate for financial loss due to absence of the key person.
Is it tax deductible?
Subject to applicable tax laws.
Can it be assigned to the employee?
Yes, under certain conditions.
How is sum assured decided?
Based on the key person's contribution.
How to claim?
Submit claim with required documents to insurer.