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Key Person Protection

Financial protection for your client’s business if a key individual dies or suffers a critical illness
Imagine you're 'The Man with the Van'

Think about a removals business where just one person is qualified to drive a particular vehicle. If that person dies or is diagnosed with a critical illness and there's no business protection in place... what happens next? How many customers would be let down? Who would pay for a replacement driver? Could the business carry on?

 

Key Person Protection injects cash into a business if a Key Person dies or is diagnosed with a critical illness (where that option is chosen). Where this option is chosen the policy will insure the life of that Key Person meaning if anything happens to them the business will be protected against any financial implications.

 

The premium is guaranteed unless you choose to include reviewable Critical Illness, in which case premiums are regularly reviewed. The maximum amount of cover for critical illness is £2 million on any individual key person, including cover with another company. There is no cash in value at any time.

 

Here are some of the features of our Term Assurance plan which can be used for Key Person Protection.

 

  • Clients can choose the level of life cover and plan term they want, subject to Underwriting.
  • Critical Illness option.
  • Protection against loss of profits, contracts, meeting loan repayments or key skills.
  • Cover available for Private Limited Companies, Limited Liability Partnerships, Partnerships and Sole Traders.
  • Instant Decision Online (IDO) application system.
  • Online ‘virtual underwriter’ enables you to get immediate completion of a case.
  • Conversion and Renewal options available.


For further information please see our Key features document

Here are some of the facts you need to know about our Term Assurance plan which can be used for Key Person Protection.

CriteriaMin/MaxDetailsNotes
Age LimitsMin Age16The ages shown are for the life to be insured who may be different from the policy holder.
Plans can be taken out individually or jointly but the cash sum is payable on the first claim only.
Max Age89
TermMin term1 year
6 years if critical illness option with reviewable premiums are selected
Max Term50 years50 years for Life Cover only
50 years if Reviewable Critical Illness is chosen
40 years if Guaranteed Critical Illness is chosen
Payment
  Limits		Min premium£5

Or £50 annually.

Monthly premiums must be paid by direct debit. Annual premiums can be paid by cheque or direct debit.
Maximum CoverNone (life cover only)NA

 

Maximum cover is £2,000,000 with Critical Illness option.

The ages shown are for the life to be insured who may be different from the policy holder.

 

Critical Illness OptionMin Age16

If your client chooses guaranteed premiums, the plan must end before the client’s 76th birthday. The maximum term of the plan is 40 years.


If your client chooses reviewable premiums, the plan must end before the client’s 91st birthday. The maximum term of the plan is 50 years.

 

 

Max Age59
Max Cover£2,000,000This includes any other critical illness cover that your client may already have with Aviva and/or any other provider.
If the cash sum is paid upon diagnosis of a critical illness, no further benefit is payable on diagnosis of a terminal illness or on death.
Critical illness cover pays out a lump sum if your client is diagnosed with a critical illness that meets our plan definition and then survive for at least 14 days. We only cover the critical illnesses we define in our plan and no others. The life insured's children are automatically covered under the children’s critical illness benefit.


Charges


There are no additional charges for clients to pay. All charges for our Term Assurance plan are included within a client’s premiums.

Here is some information to help you decide if our Term Assurance plan - which can be used for Key Person Protection - is right for your client.

 Designed for customers who Not designed for customers who
  • Want to protect against the financial consequences of death for a defined term
  • Have financial dependants
  • Have creditors
  • Want cover for a specified term 

 

  • Want an investment-linked arrangement
  • Want protection for the whole of their life
  • Want a cash-in value
  • Want a life insurance amount that decreases over the term of the plan
 Key considerations Possible alternatives
  • Level of cover required
  • Existing levels of cover
  • State of health
  • Financial liability assessment
  • Dependants
  • Succession planning if business protection 

 

  • Self-insurance (existing assets)
  • Whole of Life plan
Here are some examples of the support we offer you and your clients:

  • Quote/ Illustrations online

  • Apply online

  • Prospecting Letters

  • Specimen  Agreements

 

Case studies


Key Person Protection, Share Protection or Business Loan Protection? View our Client Guide for case studies showing how different protection solutions suit different clients and how they make their decisions.

 

Contact us

We have a wide range of support staff available to help you, click here to find the right number that meets your needs.

 

WA02177 06/2010

Related documents

For Adviser use only. This information has not been approved for use with customers.

Aviva Life Services UK Limited.
Registered in England No 2403746. 2 Rougier Street, York, YO90 1UU.
Aviva Life Services UK Limited is authorised and regulated by the Financial Services Authority.