Key man Insurance
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Rishabh Surana
Many businesses have a key person who is responsible for the majority of profits or has a unique and hard to replace skill set . Therefore, Keyman insurance policy taken out by a business to compensate that business for financial losses that would arise from the death or extended incapacity of an important member of the business.
An employer may take out a key person insurance policy on the life or health of any employee whose knowledge, work, or overall contribution is considered uniquely valuable to the company.
Also Read : Interview Question for CT5
http://forum.theactuarialclub.com/viewtopic.php?t=2750 anisha
Is it based on salary of that person? We have read about it, i think. What factors, other than we consider in life, it is based upon? Anisha wrote:Is it based on salary of that person? We have read about it, i think. What factors, other than we consider in life, it is based upon?
Key people are those individuals whose skills, knowledge, experience or leadership are important to a business’ continued financial success. Salary is not the criteria basically . It is his experience , skill , position , influence, goodwill of the person over the business or industry .
What would be the sum insured approx of everything, I mean just want to have an idea of premium vs sum insured.
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