Financial Services > Protection > Keyman Cover


These policies are available to cover key staff and the intention is to provide some compensation to a business if a key person should die or become unable to work through accident or illness.

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In such circumstances there will be considerable disruption to the business plan, and the profitability will almost certainly suffer until the individual is able to return to their full capacity or a satisfactory replacement is found.

The very nature of these disruptions is short term and so these policies tend also to be arranged for a short length of time such as 5 years.

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Important
Perhaps the most important point to consider is that if the business claims tax relief on the premium as a legitimate business expense then any benefits that are subsequently paid from the policy will be taxed as a trading receipt.

If no tax relief is taken on the premiums the benefits are also regarded as being tax-free.