Globaleye.com

Many businesses fail to protect their key personnel effectively which in turn can be the most damaging factor on the business. Here are some examples whereby we can help protect your business very cost effectively.

Keyman
As it suggest this is to cover key members of staff whose absence from the company would have a serious impact on its performance and profitability. Keyman normally consists of Life, Critical Illness and Total Permanent Disability covers whereby if an event were to occur it would pay a sum to the company to replace the income generated by the key person, offset the salary, pay for treatment, pay for a replacement etc.

Double Option Agreement
This is similar to Keyman but relates directly to equity protection of the Company. For example if a company is worth $5m and consists of two Partners, they would both insure themselves for $2.5m each. In the event of one dieing normally the spouse would be entitled to his estate which would include the share of the company. That said, the spouse normally does not want company involvement and hence relinquishes her share of the company equity in exchange for the proceeds of the insurance policy. This level of protection can be altered as the company expands.

Loan Cover
If we consider the two Partners again who have just taken a loan for $5m it is normal that the loan is joint and several. So when one dies the other is still responsible for the entire amount. A policy for the term of the loan would be a small price to pay to cover this eventuality and protect the business further in the event of the demise of one Partner.

Once again, many of the benefits described above can be written in to Trust to protect the interests of the concerned parties and their beneficiaries. Contact us today to discuss your specific corporate needs.