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Key Person Critical Illness InsuranceUK Business Protection
Key person critical illness insurance (key man critical illness cover) pays out if your key employee is diagnosed with a serious illness
Compare key person critical illness quotes from specialist UK providers. Protect your business beyond death cover.
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What is Key Person Critical Illness Insurance?
Key person critical illness insurance pays your business a lump sum if a key employee is diagnosed with a specified serious illness. Unlike life cover which only pays on death, critical illness cover protects you while the key person is still alive but unable to work.
Why Critical Illness Matters
Serious illness can be more financially devastating for a business than death:
- •Key person may be unable to work for months or years
- •Uncertainty about when (or if) they'll return
- •Business still needs to cover their responsibilities
- •Critical illness is statistically more common than death during working years
What It Covers
Key person critical illness insurance typically covers:
- ✓Cancer (excluding early-stage)
- ✓Heart attack
- ✓Stroke
- ✓Multiple sclerosis
- ✓Kidney failure
- ✓Major organ transplant
Did you know? 1 in 2 people born after 1960 will be diagnosed with some form of cancer during their lifetime (Cancer Research UK). Key person critical illness insurance protects your business against this risk.
Key Person Life vs Critical Illness Cover
| Feature | Life Cover | Critical Illness Cover |
|---|---|---|
| Pays out when | Key person dies | Key person diagnosed with serious illness |
| Key person status | Deceased | Alive but unable to work |
| Likelihood (working age) | Lower | Higher |
| Premium cost | Lower | Higher (typically 2-3x life only) |
| Best for | Basic protection, tight budgets | Comprehensive protection |
Recommendation: Most businesses should consider combined life and key person critical illness insurance for maximum protection. Critical illness claims are more common during working years than death claims.
How Much Does Key Person Critical Illness Cover Cost?
Key person critical illness insurance costs more than life-only cover but provides more comprehensive protection.
Life Only
£20/month
£250,000 Cover
- Death cover only
- No critical illness
RECOMMENDED
Life + Critical Illness
£55/month
£250,000 Cover
- Full death cover
- Critical illness included
Critical Illness Only
£40/month
£250,000 Cover
- No death cover
- Illness cover only
Prices shown are indicative for a healthy 35-year-old non-smoker. Actual costs depend on age, health, and other factors.
Key Person Critical Illness Insurance FAQs
What is key person critical illness insurance?
Key person critical illness insurance pays out a lump sum to your business if a key employee is diagnosed with a specified serious illness such as cancer, heart attack, or stroke. It provides funds while the key person is unable to work.
What illnesses are covered?
Key person critical illness typically covers cancer (excluding early-stage), heart attack, stroke, multiple sclerosis, kidney failure, major organ transplant, Parkinson's disease, and other serious conditions. The exact list varies by provider - some cover 40+ conditions.
Should I get life or critical illness cover?
Most businesses should choose combined life and key person critical illness insurance for comprehensive protection. Critical illness is more likely to occur than death during working years, making it valuable additional cover. The combined cost is typically better value than buying separately.
Is key person critical illness tax deductible?
Key person critical illness insurance follows the same tax rules as key person life insurance. Premiums may be tax deductible if the policy is solely for business benefit and covers loss of profits. Consult a tax advisor for your specific situation.
Get Key Person Critical Illness Cover
Compare key person critical illness insurance quotes from specialist UK providers.