Keyman Policy

Keyman insurance is defined as an insurance policy where the proposer as well as the premium payer is the employer, the life to be insured is that of the employee and the benefit, in case of a claim, goes to the employer if the insured person survives the term of the insurance then no money is paid to the company.

There are typically three ways to calculate quotes for a key person insurance policy: Proportion of profits: This is the key person's salary divided by the total salary bill (in the last trading period) multiplied by profits (net or gross) times the number of years it would take to replace them.