Business protection policies:
Business protection policies help business owners plan for the unexpected, by providing them with suitable cover for their business so that it functions smoothly.
No significant disruption like any loss, be it deaths of key persons, critically-ill executives, or any temporary disability.
Unlike other conventional insurance policies, this is a business policy whose premiums are borne by the place of work of the executive.
Business protection policies are of two types – key person protection policy and relevant life insurance policy.
Key person protection policy:
Key person protection policy is a life insurance policy that an organization purchases on the life of a key man or a key woman. Since this policy involves the lives of one or more executives, it is a business life policy. It is bought by the employer of the key person (on behalf of them).
This policy is required when anything untoward happens to a prominent executive such that it would affect the organization’s future in a disabling or devastating manner.
For some small to medium-sized businesses, the key person involved may be the founder, the owner, etc. while in larger companies; it may include the board of directors, the chiefs of staff, and so on. Sometimes, it strikes out on the only person capable of running the organization.
Relevant life insurance:
A perk usually awarded to employees of an organization; a relevant life policy is taken out on people such that when the concerned person dies, the policy pays out to the staff’s next of kin.
This is an alternative for companies that find group life policies expensive or if the staff present is low. This is very different from a key person insurance policy in which the death of the person results in the pay going towards the company and not the family of the deceased person.
Various factors taken into consideration include the health of the person, their age, and their lifestyle habits. After such calculations, the policy is underwritten by the insurer on the person of interest.
Therefore, the important people from the organization must secure themselves and their business right now as the future is uncertain but business must go on and should be ready to face any unfortunate circumstances.
We would recommend you to talk to one of our advisers for life insurance quotes.
Any quote that your adviser provides you with will take into account your circumstances, your medical history, as well as your budget!
Call 011-3733-4610 – Monday to Thursday from 11.00 to 19.00 and on Friday between 11.00 and 16.00