Key Person Critical Illness Cover Case Study
Kevin and George are two Shareholding Directors of a packaging business. They are successfully expanding the business and they are both currently working flat out.
They have complimentary skill sets. Kevin concentrates on buying and operations and George drives sales for the business. Turnover is increasing but margins are tight.
We discussed the business in full following the completion of a Fact Find. The business was exposed. Should either of the Directors die or suffer a critical illness the business could be in trouble financially.
The Directors decided to put two single life policies for Key Person Critical Illness Cover in place with sums assured of £100,000 each.
The business carried on at a fast pace and unfortunately this took its toll on Kevin. Kevin had several heart attacks. Thankfully Kevin survived.
The Critical Illness Cover paid out on Kevin and £100,000 was available to inject into the business cash flow. This enabled the business to survive this difficult period.
This is based on real clients. Names and details have been changed for confidentiality.
Share Protection cover was also initiated at the same time as the Critical Illness Cover.