While the controlling directors provide the foundation of your Company, there are likely to be other people who make a vital contribution to its success. If one of these key people died or is diagnosed with a critical illness or total permanent disability how would it affect your Company’s ability to compete and succeed? The loss of a key person can cause far reaching problems for a business:-
- Loss of relationships – people like to deal with people they know and losing a key person can mean losing customers to your competitors and lead to lower profits
- Loss of professional expertise – the specialist skills and experience of your business can be difficult to replace and their loss can seriously affect your competitiveness.
- Cost of recruitment – competitive job markets mean finding a replacement can be expensive and time consuming.
All of these issues will almost certainly affect the profitability of your Company unless you have prepared in advance.
By taking out life assurance and/or critical illness cover on your Company’s key people, you can ensure that your business receives a cash sum if the unexpected happens.
