For business owners
Some roles are difficult to replace quickly.
Key person protection considers the financial consequences of losing an individual whose knowledge, relationships, or production materially affect company results.
What it is
Understanding Key Person Protection.
Key person protection generally refers to company-owned coverage on an essential individual, intended to give the business financial capacity during a transition.
The company is typically the owner and beneficiary, and the funds may be used for recruitment, lost revenue, or stability.
Who it may be relevant for
- Companies with a top producer or rainmaker
- Businesses reliant on specialised technical knowledge
- Firms where one person holds the primary client relationships
- Companies where lenders have named an individual
Considerations
Common financial considerations.
These are the inputs most often reviewed during an analysis. None of them are recommendations on their own.
Revenue attribution
How much revenue is connected to the individual.
Replacement time and cost
Recruitment, onboarding, and productivity ramp all carry cost.
Client concentration
Clients may be loyal to a person rather than the company.
Ownership of the policy
Company ownership has documentation and tax implications to review with advisers.
Questions to consider
Worth thinking through first.
- 01Which individuals would be hardest to replace?
- 02What revenue is directly attached to them?
- 03How long would a replacement realistically take?
- 04What would the business need financially during that period?
The process
How the analysis works.
- 01
Start With Your Situation
Tell us what you're trying to protect.
- 02
Complete Your Financial Analysis
Provide information about your financial situation, goals, obligations, and priorities.
- 03
Review Your Options
We evaluate relevant strategies based on the information provided.
- 04
Build Your Protection Strategy
Determine which solutions are appropriate for your circumstances.
- 05
Implement & Review
Put the selected strategy in place and periodically review it as circumstances change.
FAQ
Frequently asked questions.
The information on this page is general in nature and is not individualized financial, legal, or tax advice.
Financial analysis
Your financial protection should start with your situation — not a product.
Before discussing solutions, we start by understanding your financial picture, priorities, obligations, and goals.