In the latest Construction Magazine, Milestone Advisory’s Darragh Hogan reports. In the dynamic landscape of business operations, one truth remains constant: the pivotal role played by exceptional individuals in driving success. However, what if fate takes an unexpected turn, jeopardising the linchpin of your enterprise? Enter Key Person Insurance, a strategic financial tool offered by Life Companies, designed to protect businesses against such unforeseen events.
Construction Magazine May 2024
Understanding Key Person Insurance
At its core, Key Person Insurance is a tailored life insurance solution crafted exclusively for businesses. It serves as a financial buffer, mitigating the impact of losing a key figure within the organisation due to death or severe illness.
Operational Mechanics
Accessible at any stage of a company’s journey, securing Key Person Insurance entails regular premium payments, corresponding with the desired coverage.
In the unfortunate event of the insured individual’s demise or incapacitation, the policy disburses a lump sum, cushioning the financial blow and facilitating continuity within the business operations.
Furthermore, it extends support for existing bank loans, particularly those involving personal guarantees by the key personnel,
or the repayment of loans extended to the company by said individuals.
Features
- Protection: Ensures the financial stability of the business in the event of a key employee’s demise.
- Continuity: Minimises disruptions to ongoing business activities.
- Financial Aid: Alleviates burdens related to bank loans tied to the key individual.
- Staffing Solutions: Facilitates the recruitment of suitable replacements for the vital role within the organisation.
Target Audience
Key Person Insurance is tailored for companies of all sizes, seeking to safeguard against the potential loss of highly valued employees holding significant financial or strategic importance to the business operations.
Benefits of Key Person Insurance
Embracing this specialised life insurance product instils a layer of security within your business framework. It grants reassurance
to employers, shielding them from the financial ramifications stemming from the demise or incapacity of indispensable personnel.
In essence, Key Person Insurance isn’t merely a financial instrument; it’s a shield against uncertainty, offering solace to businesses navigating the complexities of today’s competitive landscape.
Here to help you navigate your way to financial security.
The Milestone Advisory team are qualified financial services consultants. We specialise in helping professionals in the construction sector and related industries.
Our team will work with you to review your finances, explaining your options in clear English.
No jargon – just the facts.
For more information, contact Darragh Hogan (darragh@milestoneadvisory.ie).
