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BETA — Comparison Site, Not an Insurer: This website is currently in beta, launching fully in Q3 2026. We are an information and comparison resource only — we are not an insurance provider, broker, or regulated financial adviser. We have no partnerships with insurers and hold no FCA authorisation. All coverage details, pricing, and terms should be verified directly with insurance providers before purchasing. For regulated advice, consult a qualified insurance professional or visit MoneyHelper or the FCA.
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Nobody can hand you a keyman insurance quote in one click, and any page that says otherwise is collecting your details rather than pricing your risk.
A real quote comes out of an underwriter, and it turns on a small number of facts about one person. This page shows you which facts, how far each one moves the number, and what cover you are likely to need — worked through before you speak to anybody.
We are not an insurance provider, a broker, or a regulated financial adviser. keyperson.quest is an independent information and comparison resource. We hold no FCA authorisation, no partnerships with insurers, and we take no commissions or referral fees.
Nothing on this page is a quote, an offer, or financial advice. Every figure here is illustrative modelling from published market data. Before you buy any policy, take advice from a qualified, regulated professional — you can check any firm on the FCA Financial Services Register, and free impartial guidance is available from MoneyHelper.
Underwriting starts with one individual, so the first question is not how much cover but on whom. The three cases below cover almost every key person policy written for a UK business, and they differ in how much cover is justified rather than in what the policy does.
Every key man insurance quote in the UK is built from the same short list. What varies between insurers is how hard each factor is weighted, not which factors they use.
The panel shows each input with the swing it produces in this site's own premium model. Age is not merely the largest — it is larger than the other five put together.
Swings are the multipliers this site's cover calculator applies. They model relative cost so you can see what is driving the figure. They are not prices.
Before any premium means anything you need a cover figure, and there is a settled way to reach one. This site's calculator sums three things: the profit contribution you would lose, what it costs to recruit and train a replacement, and any business debt secured against that person.
The premium it then shows moves on age, on smoker status and on cover type, using the same rates as the calculator page. Every step is shown, so you can see what is producing the figure instead of being handed a total.
Nothing you type here leaves your browser. Illustrative estimate only — not a quote, and not advice.
Nine insurers write key person cover in the UK. On maximum life cover six of the nine are identical, so that column separates almost nobody. On application route they split cleanly in two, and that split decides whether you can begin on your own at all.
Three — Scottish Widows, Canada Life and LV= — are reachable only through an FCA-authorised adviser. For a third of this market, "get a quote" means "find an adviser first".
Premiums are deliberately not compared here. They depend on age, health, occupation, term and smoker status, so a premium column would be a made-up number wearing a table's authority.
A cover figure you have calculated is worth checking against what comparable UK businesses arrive at. The ranges below are typical rather than prescriptive, and the marker on each bar is the mid-point.
The spread between sectors is real and it is about replaceability, not about size. A lead developer holding the architecture of a product is harder to replace than a retail operations director with a documented supplier book, and the cover reflects it.
If your own number lands far outside your sector's band, that is not necessarily wrong — but it is worth being able to say why before an underwriter asks.
Price only matters if the thing pays out. In 2024 UK protection insurers paid £8.0 billion in claims — close to £22 million every day — and accepted 96.9% of the claims made.
The breakdown matters more than the headline. Life claims are the largest block by a distance; total permanent disability is a very small one. Key person cover pays on death, and on a defined list of conditions if critical illness is added. Long-term incapacity that is not on that list is a different product.
If that is the risk you are actually worried about, key person income protection is the thing to read next, not a cheaper quote.
People searching for a keyman insurance quote are often really trying to work out who to talk to. Three things are involved and they are easy to confuse, because all three use the word compare.
Only one of them can give you a price, and only one of them can give you advice. This page is the third thing on that list, and it is the one with no regulatory permission of any kind.
That is stated here rather than in a footer, because it changes what you should do with everything above it.
Key person insurance — also known as keyman insurance or key man insurance — is a business protection policy that pays out if a crucial employee, director or owner dies or becomes critically ill.
The payout goes to the business, and helps it survive the financial impact of losing someone essential. Three things it is normally used for:
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When you compare key person insurance options, this is the process from start to finish. Many UK businesses also document their insurance strategies through UK SRS sustainability reporting to demonstrate comprehensive risk management for stakeholders.
Every business has people who are critical to its success — whether full-time directors, key employees, or fractional executives who work part-time but deliver strategic value.
Key person insurance ensures your company can survive and recover if you lose them unexpectedly.
Pays a lump sum if the key person dies. The most common form, providing funds to cover immediate losses and find a replacement. Death benefit paid to the company; typically £100k–£1m+ cover; potentially tax deductible.
Pays out if the key person is diagnosed with a serious illness that prevents them working. Covers conditions like cancer, heart attack and stroke. Lump sum on diagnosis; commonly combined with life cover.
Enables surviving shareholders to buy out a deceased partner's shares, preventing shares passing to family members or outsiders. Funds share buyback; protects the ownership structure; works with a cross-option agreement.
Tax-efficient death-in-service benefit for directors and employees. The company pays premiums as a business expense and the payout goes to the employee's family tax-free. Corporation tax deductible; no P11D benefit; payout outside the estate.
Calculate the right level of cover based on the financial impact of losing your key employee. Four components, in the order the calculator applies them.
Key person insurance is more affordable than you might think. Premiums depend on the key person's age, health, and the level of cover.
| Cover | From | Basis | Includes |
|---|---|---|---|
| £100,000 | £20/month | Healthy non-smoker, age 30–40, 10-year level term life cover | Life cover only |
| £250,000 | £45/month | Healthy non-smoker, age 35–45, 10-year level term life cover | Life + critical illness — most popular; tax efficient |
| £500,000 | £85/month | Healthy non-smoker, age 40–50, 10-year level term life cover | Maximum protection; multiple key people; enterprise level |
Illustrative — based on aggregated public UK market data, November 2025. Not quotes.
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The tax treatment depends on how the policy is structured and what it is for.
Tax rules are complex and depend on HMRC guidelines for key person insurance — the “Anderson rules”. Always consult a qualified accountant for advice specific to your situation. Read our key man insurance tax guide →
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Different industries face different key person risks. Here is typical guidance for common UK business sectors.
| Industry | Typical cover range | Key risks | Who to cover |
|---|---|---|---|
| Construction & trades | £200k–£500k | Project delays, contract penalties | Site managers, qualified engineers |
| Technology & software | £300k–£1m | IP loss, client relationships | CTOs, lead developers |
| Professional services | £250k–£750k | Client portfolio, compliance | Partners, senior consultants |
| Healthcare & dental | £300k–£800k | Patient lists, specialist qualifications | Lead practitioners, practice owners |
| Retail & e-commerce | £150k–£400k | Supplier relationships, brand knowledge | Buyers, operations directors |
| Manufacturing | £200k–£600k | Technical expertise, quality standards | Production managers, quality engineers |
Cover ranges are general guidance only and will vary based on your specific business circumstances. Use our calculator for a personalised estimate →
Figures shown are general market information and may not reflect your specific situation. We are a comparison and information site, not an insurance provider.
The two series behind the claims and sector dioramas above, in full.
| Claim type | Paid in 2024 |
|---|---|
| Life | £4,025m |
| Whole of life | £1,532m |
| Critical illness | £1,443m |
| Income protection | £969m |
| Total permanent disability | £33m |
| Total | £8,002m — 96.9% acceptance rate |
Source: ABI & GRiD protection claims data 2024, published July 2025. Reported at the time as a record £8bn payout. Only 42% of UK consumers have protection policies (FCA, Dec 2025), in what is the 3rd largest insurance market in the world (ABI, 2025).
| Sector | Range | Typical |
|---|---|---|
| Technology & software | £300k – £1.0m | £650k |
| Healthcare & dental | £300k – £800k | £550k |
| Professional services | £250k – £750k | £500k |
| Manufacturing | £200k – £600k | £400k |
| Construction & trades | £200k – £500k | £350k |
| Retail & e-commerce | £150k – £400k | £275k |
Typical cover amounts based on roughly ten times senior employee salaries by sector. Actual requirements vary by business size, revenue and the key person's role.
Key person insurance (also known as keyman insurance or key man insurance) is a life insurance policy taken out by a business on the life of an essential employee, director, or owner. If that key person dies or becomes critically ill, the policy pays out a lump sum to the business to help cover financial losses, recruit a replacement, or repay debts.
Key person insurance costs vary based on the key person's age, health, cover amount, and policy term. Typical premiums range from £20–£100+ per month for £100,000–£500,000 of cover. Younger, healthier individuals cost less to insure. The average UK business pays around £30–£60 per month for adequate key person protection. See our full cost guide.
Key person insurance premiums may be tax deductible as a business expense if the policy meets HMRC criteria: it must be solely to benefit the business, cover loss of profits (not loan protection), and the key person must be an employee. If the payout is to cover trading losses, it's typically taxable as trading income. Read about tax treatment.
Key person insurance is essential for businesses that rely heavily on specific individuals — founders, directors, top salespeople, or employees with unique skills or client relationships. SMEs, startups, partnerships, and family businesses are particularly vulnerable to the loss of key personnel. If losing someone would significantly impact revenue, client retention, or operations, key person cover is recommended.
Key person insurance pays out to the business to cover financial losses when a key employee dies or becomes ill. Shareholder protection insurance pays out to surviving shareholders/partners to buy the deceased's shares from their estate, preventing shares going to family members or outsiders. Many businesses need both types of cover for complete protection.
Calculate key person insurance cover based on: the person's contribution to profits (typically 2–5x their annual profit contribution), cost to recruit and train a replacement (6–24 months salary), any loans or debts secured against them, and client relationships at risk. Most UK businesses insure key people for £100,000–£1,000,000 depending on their role and company size.
Yes, key person insurance can include critical illness cover as well as life cover. This pays out if the key person is diagnosed with a specified serious illness (cancer, heart attack, stroke, etc.) that prevents them working. Combined life and critical illness key person policies provide more comprehensive protection for your business.
If a key person leaves the company, you have several options: cancel the key person insurance policy and stop paying premiums, transfer coverage to a new key person (subject to underwriting), convert to personal cover for the individual, or maintain the policy if they might return. Most businesses cancel and take out new cover on their replacement.
I created Key Person Insurance UK to help business owners like you find the right key person insurance protection.
After seeing too many businesses struggle to navigate the complex world of keyman insurance, I built this platform to make comparing options simple and straightforward.
Whether you're protecting a founder, director, or essential employee, I'm here to help you find the best key man insurance cover for your UK business.
Learn more about key person insurance from authoritative sources, and explore our comprehensive guides.
Don't leave your business vulnerable. Compare key person insurance information from UK providers and protect what you've built.