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Key Person Insurance

Key person insurance is a specialist type of cover that protects a business in the event of a crucial member of staff becoming unable to work due to critical illness or death. Sometimes also called keyperson insurance, for some businesses key person insurance can be the difference between business failure and survival.

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Why is key person insurance important?

Key person insurance is a specialist type of cover that protects a business in the event of a crucial member of staff becoming unable to work due to critical illness or death. Sometimes also called key person insurance, for some businesses key person insurance can be the difference between business failure and survival.

Active Mortgages - The UK's Leading Mortgage & Finance Specialists

What is key person insurance?

Often, a business relies heavily on the skill, knowledge, and performance of an individual (the ‘key person’) who contributes significantly to the revenue and profitability of the business. This could be a director, senior manager, or any other employee, who, if they were unable to work or if they passed away, would result in a disastrous impact on business activity or profitability.

Key person insurance offers a lump sum payment to the business, to cover the cost of replacing the staff member or director, or to cover retraining costs, or offset the loss of revenue and profits from the loss. If the business had to claim on their key person insurance, they could receive a tax-free lump sum amount to cover the deficit.

Key person definition

Key person insurance should not be taken out against all members of staff: the premiums alone would mean it was not a cost-efficient decision. The business needs key person insurance only if the individual plays a significant role in the financial performance of the business. You need to consider how expensive it would be to replace them or the impact on profitability before you take out key person insurance against them.

Active Mortgages - The UK's Leading Mortgage & Finance Specialists

Expert key person insurance advisers

Active can help you assess the suitability of key person insurance cover for your business and help you figure out how much you should cover the key person for and what you can afford. Braced with this information, as well as more information about your business, the team of experts insurance advisers at Active will find the right deals for you.

We work with a range of clients from straight forward to complex client situations, to find the right key person insurance for them. We have a team of key person insurance experts that know where the best deals can be found and work closely with the insurance providers. This leads to special deals that might not be available to individuals, so it can pay to use Active to find your deal.

Booking a consultation is easy, simply let Active make it happen for you. 

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What our customers say

Daniel Couchman
Daniel Couchman
12 January 2024
This review is long overdue - Active mortgages got us our dream home! I spoke with around 7 different brokers from different companies which didn’t know what they were talking about but then I found Simon at active - he was straight to the point and got us the best deal and the highest amount possible. I got a bit impatient at one point but that was due to the banks taking ages to process everything - active were calm and reassured us. Highly recommended. Excellent from start to finish Even sent us a gift for Xmas - thank you!
Meena Kanagavel
Meena Kanagavel
2 January 2024
Jamie Murray from Active Mortgages has been amazing in setting up the VAT loan, whilst we purchased our Land. Right from the start, Jamie has been proactive in finding the correct (BEST) deals for us and ensured everyone is aligned to complete on time.Highly recommend using Active Mortgages, and we would certainly be using them again for future projects.Thanks once again Jamie for all your support throughout Dec, appreciate your efforts in making sure our purchase was done on time. Many thanks Meena (and Mark Jones)
Stefan Stancila
Stefan Stancila
21 December 2023
Comprehensive advice from Jamie & easy communication through remortgage process . Recommend!
Yasmin Bates
Yasmin Bates
20 December 2023
Jamie has made the whole process of buying a house very straightforward, especially for self employed. Would 100% recommend and would use again too!
Gerard
Gerard
19 December 2023
Good experience, helped us every step of the way.
darren john coggins
darren john coggins
12 December 2023
Dan has been great from start to finish. As a first time buyer it can be quite overwhelming and confusing but Dan has went above and beyond. His process was very easy, efficient and we could not recommend him enough!
FUNMI AKINLAMI
FUNMI AKINLAMI
7 December 2023
Excellent service, hard working staff
akinlami akinwale
akinlami akinwale
7 December 2023
Excellent service, very patient and willing to help staff
Michael Bennett
Michael Bennett
5 December 2023
Dan has been great from the first phone call. He has made everything simple and taken the time to explain everything to me as a first time buyer, answering any questions I have along the way, highly recommend
james whitaker
james whitaker
31 October 2023
Great professional service highly recommended for anything financial
Active Mortgages - The UK's Leading Mortgage & Finance Specialists

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