Key person protection
Losing a key person in your business can be a very difficult time for those left behind. A key person will have held specialist skills or expertise that are vital to the survival of your business. From a financial perspective it can cause severe implications, and so it pays to minimise the risk and ensure the long-term success of your business.
Key Person Protection policies can be issued on a level, increasing or decreasing term basis. They can pay a cash lump-sum upon the death of the life assured, or upon diagnosis of a specified serious illness if it occurs during the term of the policy. Tax relief on Key Person policies will be treated as an allowable deduction if the policy is taken out for the purpose of protecting a business against potential loss of trading income, not capital loss or security for a loan. Certain conditions must be met. We work alongside our sister company, Mitten Clarke Limited, to provide our clients with specific tax advice in this area.