Key person insurance and guaranteed income: what’s the difference?
To sum up: a key person’s insurance policy secures the company’s turnover, while the person’s salary is safeguarded by a guaranteed income policy. Suppose you find yourself out of action for an extended period of time due to illness or accident, the key person cover insures up to 80% of your turnover. At the same time, the guaranteed income policy ensures that your salary is maintained. Also check our solution for insuring against the sudden loss of a partner.
Is key person insurance something you really need?
Having your income guaranteed takes up the slack and replaces your loss of income if you are not able to work. But many self-employed people only pay themselves a limited salary because corporate tax rates are lower than personal tax rates. In addition, the company pays a lot of overheads to pay. If turnover falls due to your absence, so does your income. Key person insurance protects your turnover, while shielding the stability of your business.
Also protect control over your company
As a partner in your company, you know how important stability is. If a partner dies, the next of kin of that partner will inherit the shares and associated control. This is not always an ideal scenario. As partners, you can prepare for this, with respect for all parties.
The NN solutions for the continuity of your business
Key person insurance: protect the stability of your business
What happens if you or another key figure in your business is suddenly no longer there? If that happens, the financial consequences are limited, with your fixed overheads covered. Additional forms of cover are also possible.
If a business partner suddenly drops out of the picture, we secure the continued existence of your company for you.
If a partner dies, their shares and forms of control pass to their heirs. We enable you to avoid potentially awkward conversations and nasty (financial) surprises.
Illness, accident or death? Protect yourself from the financial consequences.
No one is immune from illness or accidents. But for the self-employed, the impact is often particularly severe. Fortunately, we can limit the financial consequences for your family.
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