Introducing Key Person Income Protection

13 September 2021

If a key employee needs time off due to illness or injury, we've launched a product that's here to help.

By providing protection to the business and support to the employee, it’s designed to help small businesses move confidently through any financial uncertainty that can occur if a key employee needs time off work due to illness or injury. It’s a simple solution to an everyday problem.

What the plan offers

Key Person Income Protection provides a monthly benefit to a business to help meet the costs of repaying a business loan, replacing lost profits or hiring a temporary replacement employee in the event of a key employee being unable to work due to illness or injury:

  • Profit protection: Up to 75% of gross profit that can be attributed to the contribution of the key employee;
  • Replacement cover: To meet the cost of hiring a temporary replacement employee at up to 2.5 times the key employee’s annual earnings;
  • Loan protection: Business loan repayments, which relate to the contribution of the key employee.

Ensuring business as usual

Illness can be an unavoidable part of life – but financial worry needn’t be. Although that’s easy to say, harder in practice when it comes to small businesses.
Did you know that 6 in 10 of businesses would cease trading within 12 months of losing a key person1? And each year, 1.6 million workers suffer from work-related ill health2. So, what happens to a business when key people are unable to work?

Listening to you and your clients

Key Person Income Protection has been launched in response to adviser feedback and complements our Key Person Protection offering. It now enhances our Business Protection proposition for advisers and sits alongside Share Protection, Relevant Life Plan and Executive Income Protection.

“We’ve listened to advisers and, as a result, launched Key Person Income Protection to enhance the Business Protection solutions we can offer them. Given the events of the last year, it’s likely many business owners will be more aware of the financial impact of illness and so this product has arguably never been more important.

Understanding the Business Protection needs of firms, especially SMEs, is key to unlocking opportunities for advisers and so we’ll be supporting this product launch with adviser training and webinar, helping to equip them for their client conversations.”  Robert Betts, Market Development Manager, Legal & General

To find out more download our sales aid or speak to one of our experienced Market Development Managers. They work with thousands of advisers like you every year, providing expert training support available through our CII accredited training workshops


Find out more about Key Person Income Protection 


1 State of the Nation 2021
2 2020