Keyman Insurance UKKey Man Protection

Keyman insurance (also spelled key man insurance or key person insurance) is a life insurance policy taken out by a business on the life of an essential employee. If that keyman dies or becomes critically ill, the policy pays a lump sum to the business.

Yes, keyman insurance and key person insurance are exactly the same thing. The terms are used interchangeably. "Key person insurance" is now the more commonly used term as it is gender-neutral, but "keyman" and "key man" are still widely used.

Keyman insurance costs vary based on the keyman's age, health, cover amount, and policy term. Typical premiums range from £20-£100+ per month for £100,000-£500,000 of cover. The average UK business pays around £30-£60 per month for adequate keyman protection.

Keyman 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 keyman must be an employee. Always consult a tax advisor.