Many people confuse keyman insurance with other types of insurance covers. If you are one of them, you can take refuge in the fact that you are not alone. However, you no longer have to take this as a justification for ignorance.
Discover the main differences between different confusing types and decide which one you need to purchase for your company or individuals in your company. Find out whether to obtain the services of keyman insurance brokers or general life insurance brokers.
Also referred to as key person insurance, companies purchase a keyman insurance to protect themselves against the sudden death or accidental loss of a key person in the company. Keyman insurance brokers compensate the business where the person was a crucial member, and not the family of the deceased.
This policy differs from other types in that it covers against losses that a company may incur in the wake of a key person’s death. Examples are training new staffs to succeed the deceased. Unlike other covers, this one has different options. Examples include life only insurance, keyman income protection, and critical illness insurance.
Basic life insurance protects a person’s family from the losses that accompany the death of the family’s breadwinner. Where life insurance brokers pay compensation to families, keyman insurance brokers pay compensation to companies and businesses. Additionally, life insurance covers injuries sustained from accidents and critical diseases that make the breadwinner unable to work as usual.
If a person suffers total disability and has to remain at home for the rest of his life, his family benefits from this cover. Life insurance has clauses where partial disability is compensated. While an individual can pay for his life insurance, his company pays the keyman insurance premiums to keyman insurance brokers
Relevant life insurance
Just as the name suggests, relevant life insurance covers a person’s life. The only difference between relevant life insurance and life insurance is that the employers of the person that it covers pay for it. At the same time, the premiums paid for a relevant life insurance are usually subjected to corporation tax relief. If you are the person that relevant life insurance covers, your family will get compensation from the insurance company.
On the other hand, the company where a key person works gets compensation to cushion it against financial losses occasioned by the person’s sudden demise. In addition, relevant life insurance covers any tragedy that makes the person unable to administer his usual responsibilities. Examples are a critical disease and grisly road accidents. It is prudent for any prospective buyer to visit leading life insurance and keyman insurance brokers to obtain expert advice.