Help understanding key person insurance

acacc289

The company I work for is looking to take out key person insurance on me.

Other than knowing I'd be the subject of the policy and they'd be the owner / beneficiary, minimal information has been given to me so I was hoping for some advice.

1) Would such policy affect existing insurances I have for myself? e.g. my own life insurance.

2) Would it affect any new insurance I apply for in the future? e.g. if I decided to setup income protection for myself, would I need to declare the key person insurance exists?

3) Are there any negatives in general I should look out for?

4) Overall is it a good or bad thing for me personally?

I'd really appreciate any information available. I've spent a few nights Googling but most things I've found are information for "the business" rather than "the employee".

Thank you.

csgohan4

generally no effect on you, the company is protecting their asset... you.

so should you become unable to work, they have insurance to pay them to employ someone else for a set time

Weighty1

1) No
2) No
3) No
4) Neither good nor bad for you personally as there's no benefit for you in being covered

Generally key-man insurance is only taken out on individuals who are pivotal to a company's profitability and success. It puts you in quite a strong position at your annual review knowing that they see you this way.......