Key Man Insurance in the UK, commonly referred to as Key Person Insurance, is a form of life insurance coverage that a company can acquire to cover itself against any financial losses from the death or critical illness of key individuals in the organization. Obtaining a quote for Key Man Insurance in the UK Typically involves the following process:

Factors Influencing Quotes:

Age and Health of Key Person: Younger people in better health typically receive lower premiums. Often, insurers will require a medical questionnaire or even a medical exam when underwriting.

Coverage: The sum assured will have a direct impact on the premium. This is usually calculated through how much money the person would cost the business if they were absent, which could be lost profits or the cost in hiring and training a replacement.

Termination of Policy: Policies are available for fixed term (for example, 10, 20 years) or up to a certain age (for example, up to retirement). Generally, the longer the term, the higher the premiums.

Type of cover: Whether it’s just life insurance, or also has critical illness cover will also influence how much you pay. Death is less statistically likely than critical illness, so cover for this tends to increase premiums.

Occupation: Some jobs may pose a greater risk, resulting in a higher premium.

Where to Get Quotes:

Insurance Companies: MyKeyManInsurance. com who specialize in Key Man Insurance are able to provide quotes from multiple insurers and thereby often help you get the best deal. They say they can beat any quote in the UK.

Comparison Websites — Sites like QuoteSupermarket. quote tools for Key Man Insurance providers, allow you to compare quotes from different providers and provide a wide market overview, with no obligation to buy.

From Insurers Directly: Some insurers such as Aviva, Vitality, etc provide Key man Insurance. Drewberry Insurance was created to allow you to compare quotes from these top UK insurers.

Quotes Example:

A healthy, non-smoking Managing Director based in London, at the age of 40 — looking to take out £300,000 of cover for 10 years — could expect prices to start from as little as £7.97 a month for a life insurance policy, or £32.98 if you add on critical illness cover, according to some sample quotes.

Steps to Get a Quote:

Step 3: Identify Your Key Person — Your Critical Person.

Evaluate coverage needs: Think about how much coverage you need based on the economic impact of losing this person.

Asking for Quotes: Contact brokers or use comparison sites It will ask for information, such as the key person’s age, health condition and the amount of coverage.

Review And Compare: Read the details of the policy, including what’s covered, what isn’t and the cost.

Consult With An Advisor: When in doubt, reach out to a financial or insurance advisor — you’ll get clarity on complex tax implications or policy details.

Just bear in mind the tax implications on Section 162 Plan are complex in nature, and business premiums are generally not deductible but the payout is tax-free to the business. However, it is always advisable to seek the help of a qualified tax specialist who can advise you on how Key Man Insurance will be treated for your business under current HMRC rules.