Key Person Insurance
Get tailored Key Person Insurance through Jensten Insurance Brokers. This cover can protect you if a key person passes away or becomes critically ill, leaving you with financial security in case this happens.
What is Key Person Insurance?
Key Person Insurance (sometimes referred to as Key Man Insurance) is a type of life insurance policy that provides a lump sum should a key person die or suffer a serious illness whilst in service with your company. The cash injection ensures business continuity, whether used to cover lost profits, maintain cash flow, replace personnel, or simply pay off an outstanding loan or investment.


Why Do Companies Need Key Person Insurance?
This type of protection offers a financial cushion if the sudden loss of this individual profoundly negatively affects the company’s operations and guarantees financial protection. The money from the insurance can help a company replace the key person and the costs associated with doing so.
What Are Some Regulations involved with Key Person Insurance?
When thinking about taking out Key Person or Key Man Insurance, there are things to know and consider:
- You cannot offset this premium via corporation tax, as it’s a lump sum benefit.
- The idea is that you do not withdraw these funds from the limited company, you retain them.
- The plan will require a trust.
- This cover is only worth considering if the company would still want to trade or is a big company. Or if the director has a big company debt.


How Much Does Key Person Insurance Cost?
Several factors can affect the cost of Key Person Insurance, which is why premiums are subject to underwriting and may change based on answers to health and lifestyle questions. We’d know ahead of incepting cover if costs were to change.
Get in touch for a customised quotation fit for your budget and requirements
Why choose Jensten Insurance Brokers?
Our Employee Benefits industry specialists based in the UK are here to assist you if you are still not sure about this type of insurance. We can provide tailored recommendations to your company.
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Key Person Insurance
To help you learn more about Key Person Insurance here is our frequently asked questions. We hope they are of use, but if you’d like some independent advice from our employee benefits consultants, please call us and a member of our experienced team will be happy to help.
This can be both scenarios. The idea of this cover is to give your company a cash injection if you or an employee passes away or becomes critically ill.
Yes, you can, but you cannot offset this premium via corporation tax.
This is something we can help you with, but if your business does currently have any debts, this is a good place to start.
Companies that are making a loss and not a profit are not eligible to buy a Key Person insurance policy.
We usually say that a 5-year term would be sufficient enough, but in some cases, you may need a 10-year policy.
The money will be paid into your company to pay for things like debts, the cost of replacing that “Key person,” or a potential loss in profits.
The cover will only pay out once, and the cover will then be cancelled once claimed.
This can be one of the hurdles with this cover, but this is something we can advise you on. The main thing to consider is what would the impact of my business be without this key person.
The business benefits from the payout; think of this cover as a cash injection to help your business continue to function.
Pretty quickly! However, you can either set this cover-up in the event of someone passing away or becoming critically ill.
All providers we work with cover you for the big things such as heart attacks, cancers, stroke, MS, Etc. However, each insurer does have a list of illnesses they will cover you for.
The only time this cover would increase is if you decide to index link the cover, or opt for a reviewable premium.
A guaranteed premium is where the premium stays fixed throughout the term.
The premium is reviewed by the insurer in terms of their own claim statistics, which could mean your premium would increase due to your demographic.