Keyman Assurance Plan
Keyman Life Assurance Scheme is a Life Insurance cover effected by a company to compensate for the financial loss or loss of profit suffered following the death of a Key Member or Staff of the Organization.
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The ‘Keyman’ here would be any person employed by a company having a special skill set or substantial responsibilities and who contributes significantly to the profits of that organization.
Two types of losses can arise — (a) Loss arising from profit reduction for the company and (b) Costs for the company in replacing the Keyman.
Features of the Plan
- Sum assured is 2 times average the net earning if plan is arranged to cover business loss/loss of profit.
- For Cover to start, a simple proposal form is required. (financial and medical questionnaire)
- The maximum insurable age is 65 years while the minimum is 22 years.
- The coverage period ranges from one to ten years.
Benefits
- It provides lump sum payment on death or critical illness of a keyman
- It provides a financial cushion to the company as a result of loss of customers or sales affected by the keyman’s ability and personality,
the cost of recruiting and training a suitable replacement and other associated costs resulting from death of the Keyman - It also provides the required funds where there is a need to purchase the deceased director’s shares.
Optional Riders (Benefits) Available
Below are the optional riders that can be bought alongside with any of the Corporate Insurance products:
- Permanent Total Disability Benefits
- Temporary Total Disability Benefits
- Accidental Medical Expenses Benefits
- Critical Illness
- Funeral Expenses
- Spousal Benefit