Key Person Insurance
Key person insurance protects businesses against the loss of profits if an employee becomes terminally or critically ill, or dies. The money can be used to find a replacement. Key person insurance can help keep the business trading.
How key person insurance works
A claim can be made if a key person dies, or is diagnosed with a terminal or critical illness. The payout can be used to help the business while recruiting for a replacement or undergoing reorganisation.
Why it's needed
Businesses need to be insured, but covering for the risk of losing a key employee is not a legal requirement. Because of this, it’s easy for businesses to overlook this protection. But this could be a mistake.
The loss of a key person can impact the business in a number of ways, including:
- Customers losing confidence in the business
- Banks calling in loans
- Suppliers asking for payment up front
Many businesses consider their staff their most valuable asset - and if your client feels this way about their workforce too, key person protection could be the cover they’re looking for.
Key persons in a business
A key person can be any individual who significantly contributes to a business’s financial success due to their:
Key people can be found at any level or department of a business, but can include:
- Managing directors
- Sales managers
- Research and development staff
- Creative specialists
- Technical experts
- Sole traders
We give the person insured access to Best Doctors for invaluable second medical opinions. Their knowledge helps the individual and their immediate family get the right diagnosis, treatment and care.
From on-demand consultations with UK based GPs to second medical opinions from Best Doctors®, our Smart Health service is a convenient way to connect your clients to tools that help them manage their health and wellbeing. It’s available 24/7, 365 days a year, anywhere in the world and can also be used by their partners and children up to age 21, all at no additional cost.
Smart Health is provided to AIG Life Limited customers by Teladoc Health.
Smart Health and Best Doctors are non-contractual benefits, meaning they don’t form part of an insurance contract with us. The services can be withdrawn at any time without notice.
Literature and support materials
Business Protection Adviser Guide
This Business Protection guide helps to support and streamline the advice process.
Reasons why - Business Protection
A guide to provide an example of what a ‘reasons why’ letter could contain.
Term Assurance for Business - Key Facts
For more information on AIG's Business Protection with Term Assurance cover, visit our Key Facts.
Critical Illness for Business - Key Facts
For more information on AIG's Business Protection - Critical Illness with Term Assurance cover, visit our Key Facts.
Critical Illness for Business - Cover Details
Read our Cover Details for an explanation of how AIG's Business Protection - Critical Illness with Term Assurance product works.
Business Protection - Quick reference guide
This document is a snapshot of our Business Protection offering, containing an overview of the types of cover on offer, how to determine a cover amount, features and benefits and tax considerations.