Key Person Income Protection helps businesses who wish to protect against the financial impact of their employee becoming ill or injured. If the employee covered becomes incapacitated due to illness or injury and unable to work as a result, we will pay your client’s business a regular monthly benefit.

The benefit can be used to hire a temporary replacement employee, to protect a proportion of profits, or help with business loan repayments.

Key features and benefits



Designed to help small businesses

Reduces the impact of the incapacity of the key employee on the business at what would otherwise be a time of financial worry.

Navigate financial uncertainty

Cover can go towards loan repayments and protecting lost profits, to service any borrowing of the key person’s remuneration or to hire a temporary replacement employee.

Fast underwriting decisions

80% of underwriting decisions receive an instant decision.

Return to work support

We’ll continue to pay a proportion of the benefit if the employee returns to work at reduced capacity.

Includes Waiver of Premium

Your client won’t have to pay their premium while the benefit is being paid.

Protect against inflation

Option to choose increasing cover, which increases in line with the changes in the Retail Prices Index.

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Product details

For full details, see key documents for the policy summary and policy booklets

Cover overview

For full details, download the Product Profiles PDF: 905KB document

Minimum cover
  • No minimum amount of cover. Driven by minimum premium
Maximum cover
  • Up to £20,833 per month (£250,000 per year) for level cover, or £14,583 per month (£175,000 per year) at outset for increasing cover.

The following applies:

    • Up to 2.5 times the key employee’s annual earnings to meet the cost of hiring a temporary replacement
    • Up to 75% of the business’s gross profit which can be attributed to the contribution of the key employee
    • The repayments and related interest of a business mortgage of loan which related to the contribution of the key employee
Type of cover
  • Only available as a single life plan
  • Level and increasing cover available
  • Increasing cover increases in line with changes in the Retail Price Index up to a maximum increase of 10%
  • The premium increases in line with the change in the Retail Prices Index multiplied by 1.5 subject to a maximum increase of 15% per year
Minimum term
  • 5 years
Maximum term
  • 20 years
  • There may be certain occupations that have limitations on the length of the policy
  • Policy must end by the employee’s 70th birthday
Minimum age
  • From employee’s 18th birthday
Maximum age
  • The day before the client’s 60th birthday to take out a plan
  • Payable monthly by Direct Debit

Benefits and options

Deferred period
  • Your client can choose from 4, 8, 13, 26 or 52 weeks
Limited Benefit Period
  • Optional. The benefit for any individual claim is limited to 12 or 24 months, depending on which option is chosen from outset
Linked Claims
  • Included
Proportionate Benefit
  • Included
Rehabilitation Support Service
  • Included at the point of claim
Wellbeing Support
  • Access included. Service provided by RedArc Assured Limited
Waiver of Premium
  • Included
Changing your policy (previously known as Guaranteed Insurability Option)
  • Can increase cover on certain specified events, without need for further medical evidence
  • Eligibility criteria and restrictions apply
Other changes
  • Your client can request to make other changes to their plan. A new policy may need to be set up

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