Key person insurance for a company director
- Company director with director loans
- Individual needed business protection insurance as he was a key person within the company
- Recommendation for £4 million of life and critical illness cover to protect the business
Client’s circumstances
The client was a 42-year-old non-smoker who was resident in the UK and who was the director of a company.
Issues addressed
The client had bought out his business partner via an equity fund.
The company’s board had decided that the individual needed to take out key person insurance to protect the business, as there could be significant consequences if he were to die unexpectedly or be incapacitated by illness.
He had also previously taken director loans from the company’s funds.
Tailored solution provided by John Lamb Hill Oldridge
Our recommendation was for a five-year term insurance plan that provided both life and critical illness cover. The policy was set up on a renewable term basis, so that it could be continued if there was still a need for the cover after five years. The sum insured was £4 million to cover the estimated cost to the business were he to die or become ill.
This case illustrates how John Lamb Hill Oldridge provides bespoke solutions to individuals and businesses who require insurance against illness or death of their directors and other key personnel.
