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.
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
Only a third of 16 to 24-year-olds gave to charity last year, down sharply since the pandemic.
The chancellor has given an update on her plans for the economy - how are ordinary people tackling their own financial challenges?
The 233-year-old chain will become TGJones but the WH Smith brand will continue at airports and railway stations.
Manufacturers are expected to ask for state support ahead of next week's 25% tax on exports.
Investors sold off shares of carmakers in Japan, Germany and the UK, but US brands are also set to be hit.