Key person insurance is an important form of business insurance. There is no legal definition for 'key person insurance'. In general, it can be described as an insurance policy taken out by a business to protect that business for potential financial losses that could arise from the death or extended incapacity of an important member of the business specified on the policy.
One of the great risks of a business partnership is that one of the partners may die or suffer a specified critical illness, with his or her share of the business passing to their beneficiaries. The safety net is a pre-arranged scheme to ensure the surviving partners have enough funds to buy out the departed partner's interest in the business.
A Relevant Life Plan is a death-in-service benefit taken out by a company on behalf of an employee.
In the interests of financial security, business stability, and continuity - particularly for private limited companies where there may only be a small number of principal shareholders - it is important to provide a safety net following the loss of a shareholder
UK News
Changes announced in the Budget mean domestic energy prices should fall sharply in April.
Warner Bros says the latest proposal could convince it to abandon the deal it struck with Netflix.
From 25 February, a new system will come into force which will affect many people, including British dual nationals.
The AI developer laid out red lines on military use of its products, a source said.
Users were unhappy about plans for age verification to require facial or ID scans.