Key Man

You have invested so much into your business to see it go under simply because of the loss of one key person. This is why key-man insurance helps businesses stay afloat after the death of an owner, founder or employee.

“Key man” Insurance is a life and disability policy taken out with the business firm as a beneficiary in the event of death or disability to a particular Key employee, director or founder.

How it works:

The policy works by paying the agreed benefit to the business in the event of death or disability of a person who is so important to the business that the death or disability of such a person could have devastating effect on the business. The insurance payout helps in the employment of a replacement executive and purchasing also in purchasing the shares held by the deceased executive. Thus, the Key-man life insurance helps pay the family members of the deceased.  Key-man insurance coverage is considered as part of business insurance program of any small to medium size organization.


The plan ensures that lump sum cash is available to the organization for the recruitment of another executive, to pay for shares held by the deceased executive and also to settle other debts owed by the company.


Minimum sum assured is N5 million.

Maximum age at entry is 60 years.

There must be a subsisting functional business.