If you are looking for good keyman insurance as well as the best critical illness insurance Singapore, then you have come to the right article, and also you should know these ten things before you apply for keyman insurance for a key person of the company which is responsible for the smooth working as well as the enormous growth of the company in the particular field of business in which they are currently working in.
To take a keyman insurance policy is a good practice that almost every business does as an extra measure so that they can avoid any losses that occur when the key person of any business leaves the business or has unfortunately died due to any natural incident or in an accident so a company takes a policy on behalf of that person so that they can insure and pay for all the loses that occur when a key person leaves the company, and the company needs funds so that they can pay off any remaining debt.
Keyman insurance is essential for the well-being of the organisation as it safeguards them from losses. Here is the list of 10 things you should know before applying for keyman insurance.
- What is keyman insurance:-
Keyman insurance is taken to ensure the life of that persona or the person in your company which is responsible for the company’s growth as well as the company becoming so famous in the market place that there are many customers and also many companies want to become partners of the business.
If any key person of the business falls ill or dies due to any reasons, then this insurance policy money is given to the business so that they are safe from the financial crisis and also you can use this money to pay for the research and development of new products and can also be used to recruit new employs, training staff etc.
- What does keyman insurance cover:-
Keyman insurance will provide the business with a cover for the loss of the life of the key person of the company and will also provide funds to the key person if they are in a condition of critical illness and need money to operate and cure the disease.
- Do I need keyman insurance:-
The answer is yes if you own a business then you should buy this insurance policy as employees are the only ones who are the most important assets of the company as they are responsible for working of the company.
This policy will ensure you that you receive the amount of money requested if anything happens to the key person and this money can help you to be safe from any loss in the business.
- Who is a key person:-
A key-person is the most important person in the business doe to his or her death, illness or disability it might affect the company greatly as they were the only people in the company who had the capability and also the contact in the market which could lead in the increase in sales and also the reputation of the business.
- What level of keyman insurance does one need:-
This depends on the most important factor is the total salary of the key person in a particular year, and this is a thumb rule that you will have to multiply the amount of salary given to the key person in a year by five times so that you get the minimum amount for which you have to take the policy for.
You should also consider all the factor like how much profit does the company make and also the money required to search for new employs once the previous one has left.
- Is keyman insurance tax deductible:-
If you have selected a term insurance plan, then you have to pay the premium of the tax corporation relief as you are taking a huge amount of insurance from a particular bank or a financial institution and have to pay it back also.
- Where can one buy keyman insurance:-
You can get the keyman insurance from either a bank or a financial institution, but it is safe that you first talk to the financial advisor of the company so that they will research and select the best policy giver in the market.
The financial advisor will also help you to select a key person for your company due to which you can select the amount of money that you want to take as an insurance policy and can also make a plan after you have taken the money.
- How much does keyman insurance cost:-
The total cost of keyman insurance depends on the various factors like the yearly salary of the key person in the company and also depends upon the factor like the total profit the company makes in a year and also the profit which the company has made in the previous 4 to 5 years, and it also depends on the amount of loan taken and also it depends on the amount of money that you have to pay as premium.
- Who can buy keyman insurance:-
The keyman insurance can be bought by many companies it can either be a company which works on an international level and it can also be an MSME (medium and small enterprise) as there are no restrictions imposed on companies that can take this policy.
- You have to look at the financial needs of the company:-
Before signing the contract and sending it to the company for receiving the amount of money as a loan, you have to check the amount for which the company wants a loan, and you will have to check the amount of money in which the company is currently in debt with and has to take money to pay off these debts so that they can ensure the smooth running of the business.
I hope you get some valuable information from this article.