Key person insurance is the provision of a protection to a business against the death and/or disability of a key employee. We have separate notes available which explain the protection of shareholders and partners interests in their businesses.
The consideration of succession when one is looking at a closed limited company or a partnership is always a difficult one. These notes consider some of the options for protecting a business where there are a few shareholders / partners. We have separate notes available which explain the protection of the business alone (i.e., key person insurance).
The following notes are designed to explain the principles behind the more common loan alternatives available today.