Key person insurance that keeps the business trading
A lump sum paid to the business if a director, MD, top salesperson or technical specialist dies or is diagnosed with a critical illness — replacing lost revenue, servicing debt and buying the time you need to recruit a replacement. Tax-efficient where structured correctly.
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We compare the whole key person market
Including the business-focused insurers and Anderson-compliant structures most high-street advisers never even look at.
How we size key person cover properly
Most businesses guess the number. We work it out properly — who your key people actually are, what they contribute to revenue, and how long it would take to replace them — in three simple steps. It’s why we’re rated 5.0 on Google.
Who’s business-critical?
Not just the owners. Top salespeople, technical leads, MDs, rainmakers. We work with you to list the people whose absence would materially hit revenue, client relationships or debt servicing — and what they each contribute.
We size the cover properly
Revenue multiples, salary-based formulas, cost-to-replace — we use the approach that fits your business, not a one-size rule of thumb. The term matches how long the business would take to recover, not how long the director wants to work.
Anderson-compliant cover in place
Structured so premiums can be a deductible business expense where the Anderson rules apply — the company owns the policy, pays the premium and receives the lump sum direct. No BIK on the key person, no messy trust issues, proper HMRC paperwork.
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Why key person cover matters
In most SMEs, two or three people hold the business together. The MD who runs the show. The salesperson who brings in half the revenue. The technical lead every client asks for by name. If one of them dies or gets a serious diagnosis tomorrow, revenue doesn’t just dip — pipeline freezes, clients start drifting, the bank asks questions, and the team starts updating their CVs.
Key person cover is the lump sum that buys you time. Time to recruit properly. Time to keep paying the bills. Time to steady the ship. Paid direct to the business, tax-efficient where the Anderson rules apply, sized to what each key person actually contributes — not a finger-in-the-air number. We set it up properly so if the worst happens, the money lands where it needs to.
Book a key person review →Every kind of key person, covered
Key person cover isn't just for MDs. It's for anyone whose absence would take a chunk out of revenue, client relationships or debt servicing — and that's different in every business. Here's who we most often insure.
MD & CEO cover
The person who holds it all togetherThe MD carries the client relationships, the bank relationships, the culture and the strategy. Losing them is rarely a quick fix. We size cover around revenue exposure and likely recruitment timelines.
Rainmaker cover
The person your pipeline runs throughIf one salesperson brings in 30–60% of revenue, they're arguably more critical than the owner. Lump sum covers the pipeline gap while you recruit and re-build client relationships.
CTO & technical lead cover
The person who knows how everything worksLead developers, engineers, scientists, clinicians. Their knowledge isn't written down anywhere. Cover pays for contract replacements, consultancy fees and the 12 months it takes to rebuild capability.
Founder cover
Vision, brand, personal guaranteesThe founder often carries personal guarantees on loans, property leases and credit facilities. Cover protects against loan recall, landlord exposure and the reputational hit of founder-led brands.
FD & finance lead cover
Cashflow, covenants, investor reportingAn FD who manages cashflow, banking covenants, funding rounds and board reporting is near-impossible to replace quickly. Cover buys 6–12 months of interim FD fees and an orderly handover.
COO & operations cover
The person who keeps delivery movingOperations leads run the machine — suppliers, logistics, team management, delivery standards. Losing them mid-year can stall everything. We size cover around operational recovery cost, not just salary.
Covering 2+ key people
Separate policies for separate rolesMost SMEs have two or three genuinely business-critical people. We write separate policies, properly sized to each person's contribution — so a single claim covers the specific gap it needs to.
Sole director / owner-manager cover
Where the business is the personIn a one-director consultancy or professional services practice, the business doesn't really exist without the owner. We structure cover that either winds the business down cleanly or funds a successor in.
The Montgomery key person promise
Whole-of-market insurers
Aviva, L&G, Royal London, Vitality, AIG, Scottish Widows and more — we compare every key person insurer, not just one panel.
Revenue-based sizing
We work out the right sum assured using revenue multiples, salary-based formulas or cost-to-replace — the method that fits your business, not a round number pulled out of the air.
Anderson-compliant structuring
Where the Anderson rules apply, premiums can be a tax-deductible business expense with the claim taxed as a trading receipt. We structure it so HMRC works with you — backed by your accountant.
Written into the business
Company owns the policy. Company pays the premium. Lump sum lands in the business account — not the director’s estate — so it’s there when the business needs it.
One dedicated adviser
One human from first meeting to policy on risk — talking directly to your accountant and solicitor where needed, not bounced around a call centre.
Annual reviews built in
Business valuations change, directors come and go, key people get promoted. We review your cover every year to keep the sum assured matched to the real value of the people you’re protecting.
Don't take our word for it
Key person insurance FAQs.
Quick answers to the questions business owners ask us every week.
Ask a real person →What exactly is key person insurance?
It’s a life (and often critical illness) policy taken out by the business, on the life of a key employee or director, with the business as owner and beneficiary. If that person dies or is diagnosed with a critical illness during the term, the insurer pays a tax-free lump sum straight to the company — cash the business can use to cover lost profits, recruit a replacement, or reassure the bank.
How do you decide how much cover we need?
We size it using one of three methods: a multiple of the key person’s gross profit contribution, a multiple of their salary (typically 5–10×), or a cost-to-replace calculation (recruitment, lost revenue, training). We pick the method that best fits your business model and back it up with figures your accountant will happily sign off.
Are the premiums tax-deductible?
They can be, where the Anderson rules apply: the cover is on an employee (not a shareholder), the policy is short-term, the sole purpose is to protect the business against loss of profits, and the business owns the policy. Where those conditions are met, HMRC generally allows corporation-tax relief on the premiums — but the claim is then taxable as a trading receipt. We structure it properly and work alongside your accountant.
Who actually owns the policy and receives the payout?
The business owns the policy, pays the premiums, and receives the payout. The key person’s family gets nothing from this policy — it’s for the business only. If you want cover that protects the family too, that’s a separate Relevant Life or personal policy, and we can arrange that in parallel.
Can we cover more than one key person on one policy?
Not on one policy — each key person needs their own policy on their own life. But we can set up multiple policies under one business arrangement, reviewed together, so it’s still one conversation, one adviser, one annual review.
What about critical illness cover — is it worth adding?
Statistically, a senior employee is far more likely to be off work long-term with a critical illness than to die during the term of a policy. Adding critical illness means the business gets a payout even if the person survives but can’t work — often the scenario that does the most operational damage. For most key roles we’d recommend considering it.
Let's protect the people your business depends on
Free 20-minute call with a Montgomery adviser. We'll size the cover properly, compare the whole market, and structure it so HMRC works with you — not against you.
Book a key person review →