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Keyman Cover
This type of cover is used to provide a lump sum of cash into the business in the event of death of a “Key person.” This could be a senior partner in the business where the premature loss of his input into the business has an adverse effect on the business income.
The normal solution would be to effect a type of term assurance policy where the level of cover would be calculated from that individual’s contribution to the business income.
The plan would be set up in such a way where the proceeds would be payable to the business as opposed to the individuals estate.