Businesses that rely heavily on the contribution of one or more key employees are financially vulnerable if those people die or can no longer work due to illness. Key Person Protection is a policy written on the life of an employee who makes a significant contribution to the profits of the business, for example a top sales person or a person with valuable technical expertise.
If such an employee dies or is diagnosed with a critical illness, their absence would severely affect the business financially. Key Person Protection either pays out a benefit equivalent to the profit the key person would have generated or finances the hiring of a replacement member of staff. Key Person Protection can therefore be vital in keeping the business on its feet
