How Much Life Insurance You Need?
We offer following Insurance policies under
Key man insurance is simply insurance on the key person in a business. In a small business, this is usually the owner, the founders or perhaps a key employee or two. These are the people who are crucial to a business--the ones whose absence would sink the company.
Keyman Insurance is usually availed by organizations for protecting the following personnel;
Stakeholders like Owner, Partner, Director, Chairman and Major Shareholder, etc….
CEO, CFO, COO Etc.
Key employees managing large Banking relationships, supplier relationships, collection of payment and client relationships
Personnel holding key positions in the accounts, finance, IT, and the sales departments of a company.
Company purchases a life insurance policy on the key employee, pays the premiums and is the beneficiary of the policy. If that person unexpectedly dies, the company receives the insurance payoff. The reason this coverage is important is because the death of a key person in a small company often causes the immediate death of that company. The purpose of key man insurance is to help the company survive the blow of losing the person who makes the business work. The company can use the insurance proceeds for expenses until it can find a replacement person, or, if necessary, pay off debts, distribute money to investors, pay severance to employees and close the business down in an orderly manner. In a tragic situation, key man insurance gives the company some options other than immediate bankruptcy.
Waiver of premium benefit ensures that in the event that a life insured
is totally incapacitated by illness or accident the policy premiums are paid
by us. This means that the policy can continue as originally planned.
The maximum age at entry for this benefit is 59 and the benefit stops
at age 70.
• Critical illness benefit provides a lump sum amount if the life insured
is diagnosed with a critical illness, or undergoes a medical procedure
covered under the policy. The maximum age at entry for this benefit is 59.
Critical illness claims are paid as an advance of the life cover sum insured,
so in the event of a claim the life cover sum insured will be reduced or
extinguished altogether.
• Children's critical illness benefit is included within the critical illness
benefit definitions. This will pay a lump sum of the lower of USD10,000
or 10% of the Critical illness Benefit Sum Insured in the event of the Life
Insured's child being diagnosed with a critical illness, or undergoing a
medical procedure covered under this definition. A maximum of three
children are covered by this benefit. The payment of a valid children's
critical illness benefit claims does not reduce the Critical illness Benefit
Sum Insured or the Policy Value.
• Permanent and total disability benefit (PTD) pays a lump sum
amount in the event that the life insured is diagnosed as permanently
and totally disabled. The maximum age at entry for this benefit is 59
and the benefit stops at age 70. A valid claim for PTD will not reduce
the life cover sum insured.
Family income benefit pays a series of regular payments for a selected
period of time in the event of the death of the relevant life insured.
The maximum age at entry for this benefit is 74.
• Accidental death benefit is paid in addition to the life cover sum insured
where the life insured dies as a result of an accident. The maximum age at
entry for this benefit is 59 and the benefit stops at age 70.
• Dismemberment benefit pays a lump sum if the life insured suffers the
loss of sight or limb as the result of an accident. The maximum age at
entry for this benefit is 59 and the benefit stops at age 70.
• Hospitalisation benefit is payable if the life insured is hospitalised for
more than three consecutive days. The maximum age at entry for this
benefit is 59 and the benefit stops at age 70.
Fraud, misrepresentation and suicide within the first 2 years are the only policy exclusions with key man Inusrance
It is based on the age of the Keyman
The maximum sum assured for Keyman insurance is lower of:
Ten times the keyman's annual compensation package.
Three times the average gross profit of the company for the past three years.
Five times the average net profit for the past 3 years.
Key Man Insurance, also known as Key Person Insurance or Key Employee Insurance, is a type of life insurance policy that a business purchases to protect itself from the financial losses that could arise due to the death or disability of a key employee or key individual within the company. The main benefits of Key Man Insurance include:
- Financial protection: Key Man Insurance provides financial protection to the company against the loss of a key employee whose skills, knowledge, or expertise are crucial to the business's success. If the key person passes away or becomes disabled, the policy's proceeds can be used to cover financial losses, such as a decline in revenue, increased expenses, or the cost of finding and training a replacement.
- Business continuity: Losing a key employee can severely disrupt a business's operations, particularly if that person possesses unique skills, contacts, or intellectual property that are difficult to replace quickly. Key Man Insurance helps the business maintain stability and continuity during such challenging times.
- Debt repayment: If the business has taken on loans or debts that are personally guaranteed by the key person, Key Man Insurance can be used to pay off these obligations, preventing the burden from falling on the deceased or disabled individual's family or estate.
- Recruitment and training costs: Finding a suitable replacement for a key employee can be time-consuming and expensive. Key Man Insurance funds can be used to cover recruitment expenses and the cost of training the new hire to ensure a smooth transition.
- Peace of mind for stakeholders: Key Man Insurance provides reassurance to investors, creditors, and other stakeholders that the business has taken steps to mitigate the risks associated with the loss of a key individual, making the company a more secure investment.
- Enhanced creditworthiness: With Key Man Insurance in place, a business may be considered more creditworthy by lenders, as it demonstrates the company's preparedness for unexpected events and its ability to repay debts even if a key person is no longer present.
- Tax benefits: In some jurisdictions, Key Man Insurance premiums may be tax-deductible as a business expense, providing potential tax advantages to the company.
- Retention tool: Offering Key Man Insurance coverage can be an attractive incentive for key employees to stay with the company, knowing that their contributions are valued and their families will be protected in the event of their untimely death or disability.
When considering Key Man Insurance, there are some important points and special considerations to keep in mind:
- Identifying Key Individuals: Before purchasing Key Man Insurance, it's crucial for a company to identify the key individuals whose absence would significantly impact the business's operations and profitability. These individuals could be top executives, key salespeople, technical experts, or anyone whose expertise and contributions are critical to the company's success.
- Coverage Amount: The coverage amount for Key Man Insurance should be carefully determined. It should be sufficient to cover potential financial losses, recruitment costs, and debt repayment, but not excessive. Over insuring could lead to unnecessary premium expenses.
- Policy Ownership and Beneficiary: In most cases, the company owns the Key Man Insurance policy, pays the premiums, and is the beneficiary. This ensures that the company receives the proceeds in the event of the key person's death or disability.
- Pre-Existing Health Conditions: Key Man Insurance, like any life insurance policy, may involve medical underwriting. The key person might need to undergo a medical examination, and pre-existing health conditions could affect the policy's premium rates.
- Policy Type: Key Man Insurance can be either term life insurance or permanent life insurance (whole or universal life). Term life insurance provides coverage for a specific period, while permanent life insurance offers coverage for the insured's entire life. The choice of policy type depends on the business's needs and budget.
- Policy Exclusions: Key Man Insurance policies may have exclusions that limit coverage in certain circumstances, such as death due to suicide within a certain period after the policy is issued. It's essential to understand these exclusions and their implications.
- Premium Payments: The company is responsible for paying the premiums on the Key Man Insurance policy. It's crucial to ensure that premium payments are made on time to keep the policy in force and avoid any lapses in coverage.
- Policy Review and Updates: As a business evolves, the key personnel may change. It's essential to review the Key Man Insurance policy periodically to ensure it remains aligned with the company's needs. Policy updates may be necessary when there are changes in key personnel or the business's financial situation.
- Tax Implications: The tax treatment of Key Man Insurance can vary depending on the jurisdiction and local tax laws. It's essential to consult with tax advisors to understand the tax implications of purchasing and claiming benefits from Key Man Insurance.
- Key Man vs. Business Continuation Insurance: Key Man Insurance is different from Business Continuation Insurance (Buy-Sell Agreement Insurance), which is designed to help businesses survive the death or departure of a business partner or shareholder. These two types of insurance serve different purposes and should not be confused.
Key Man Insurance (also known as "Key Person Insurance") is a type of life insurance that a business procures on a critical person within the organization—a person whose absence, due to death or disability, would significantly impact the company financially. This could be the CEO, a top salesperson, or any other vital contributor.
The Claim Process:
- Incident Occurrence: The key person covered under the policy dies or becomes disabled (based on the terms of the policy).
- Immediate Notification: The company should notify the insurance provider of the incident as soon as possible.
- Document Collection: Gather all necessary documents, including the death certificate in the event of death or medical reports in case of disability.
- Claim Form Completion: Fill out the claim form provided by the insurance company. This form will require details about the policy, the company, and the circumstances surrounding the claim.
- Submission: Submit the completed claim form along with the required documents to the insurance provider.
- Claim Assessment: The insurer will assess the claim to ensure that it aligns with the policy's terms and conditions.
- Communication: The insurance company will either approve or reject the claim based on their assessment and inform the company of the decision.
- Payout: If approved, the insurance payout will be made to the company, helping it navigate the financial challenges brought about by the loss of the key person.
- Completed Claim Form: Ensure the form is filled out with all necessary details accurately.
- Death Certificate: If the key person has passed away, a certified copy of the death certificate will be required.
- Medical Reports: In the case of disability or illness claims, detailed medical reports explaining the condition, its impact, and prognosis may be necessary.
- Policy Documents: A copy of the Key Man Insurance policy, or at the very least, the policy number and relevant details.
- Proof of Financial Impact: While not always needed, some insurers might request documentation that demonstrates the financial impact of the loss of the key person on the company.
- Employment Details: Information verifying the key person's role and contribution to the company, such as an employment contract or job description.
- Any Additional Documents: Depending on the specifics of the policy or the nature of the claim, the insurer might request additional documentation.
Mortgage insurance in UAE is typically designed to repay a mortgage in full or in part if the borrower dies, becomes critically ill, or in some policies, if they become unemployed. Here's how the claim process usually works and a checklist of items generally needed for such a claim:
The Claim Process:
- Incident Occurrence: The insured/borrower encounters an event covered by the policy—death, critical illness, or unemployment, based on the policy specifics.
- Immediate Notification: The beneficiary or the estate should notify the insurance company of the incident promptly.
- Document Collection: Relevant documents supporting the claim need to be gathered. The nature of these documents will depend on the type of claim being made.
- Claim Form Completion: Obtain the claim form from the insurance provider and complete it in full, ensuring accuracy and thoroughness.
- Submission: Submit the filled-out claim form along with the required supporting documents to the insurance provider.
- Claim Assessment: The insurance company will assess the claim against the terms and conditions of the policy.
- Communication: The insurer will communicate their decision—approval or rejection—after their assessment.
- Payout: If the claim is approved, the insurance company will make a payout, either directly to the beneficiary or to the lender to pay off or reduce the outstanding mortgage.
- Completed Claim Form: Ensure all required sections are filled out accurately.
- Death Certificate: In case of a death claim, a certified copy of the death certificate is required.
- Medical Reports: For critical illness claims, medical reports or documentation confirming the diagnosis and its severity are typically required.
- Proof of Unemployment: If the policy covers unemployment, proof of the insured's unemployment status, reasons for termination, and any relevant dates might be necessary.
- Mortgage Documents: A copy or details of the mortgage agreement, showing the outstanding amount, loan terms, and other relevant details.
- Policy Details: The mortgage insurance policy document or, at minimum, the policy number and pertinent details.
- Identification: Proof of identity, such as a driver's license or passport, might be requested.
- Banking Details: In some cases, for the direct transfer of funds, banking details of the beneficiary might be necessary.
- Any Additional Documents: Depending on the specifics of the policy, the insurer might request further documents or clarification on provided information.
Partnership insurance, also known as "buy-sell" or "buyout" insurance, is a type of coverage that supports the continuity of a business in the event that a partner dies or becomes seriously disabled. The policy provides funds to the remaining partners to buy out the affected partner's share, ensuring the business can continue operating smoothly. 1) The Claim Process:
- Incident Occurrence: A partner covered by the policy dies or becomes seriously disabled, leading to them being unable to contribute to the business.
- Immediate Notification: The remaining partners or the business entity should notify the insurance company of the event as soon as possible.
- Document Collection: Gather all necessary documents related to the claim. The type of documents required will depend on the nature of the claim (e.g., death vs. disability).
- Claim Form Completion: Obtain and fill out the claim form provided by the insurance company, ensuring accuracy and thoroughness.
- Submission: Submit the completed claim form and all accompanying documents to the insurance provider.
- Claim Assessment: The insurance provider will assess the claim against the terms and conditions specified in the policy.
- Communication: After evaluation, the insurer will communicate their decision, either approving or rejecting the claim.
- Payout: If the claim is approved, the insurance payout will be made to the remaining partners or the business entity, allowing them to buy out the affected partner's share.
- Completed Claim Form: Ensure it's filled out in detail and accurately.
- Death Certificate: In the event of a death claim, a certified copy of the death certificate is necessary.
- Medical Reports/Documentation: For disability claims, comprehensive medical documentation outlining the nature, severity, and expected duration of the disability is required.
- Partnership Agreement: A copy of the partnership or buy-sell agreement, indicating the valuation method of the partner's share and other relevant terms.
- Insurance Policy: A copy of the partnership insurance policy, or at the very least, details like the policy number.
- Financial Statements: Business financial statements or reports that provide insight into the valuation of the business might be needed.
- Proof of Premium Payments: Documents proving that premiums were consistently paid and the policy was in effect at the time of the claim.
- Identification: Valid identification of the claimant, which could be one of the remaining partners or a representative of the business.
- Any Additional Documents: Depending on the specifics of the policy and the nature of the claim, the insurance company might request additional information or documents.
Shareholder protection insurance is designed to ensure that the aftermath of a shareholder's death is a smooth and stress free as possible. It involves writing up a series of legal agreements that set out how shares are to be managed if a stakeholder passes away. Either the fellow shareholders or the company as a whole takes out insurance policies on the lives of each shareholder. Should a shareholder die, policy pay-outs can be used to purchase the shares of the deceased holder.
This policy provides cover for the loss of profits sustained as a result of a business interruption caused by material damage indemnifiable under the Machinery Breakdown insurance.
Death-Should a shareholder die or suffer a terminal illness (diagnosed with less than 12 months to live) the plan would payout a lump-sum to the other shareholder(s).
Critical Illness-This option enables the plan to payout if the shareholder were to suffer a serious illness.
A pay-out in the event of a loss of a major shareholder
Funds to purchase shares from the deceased individual's estate
Legal agreements to protect the company
Tax efficiency in the event of a loss
Duration of cover is for one year. You need to renew your insurance policy annually.
A safe and stable business plan
In today's cutthroat world of business it's crucial to underpin an enterprise with a safe and stable business plan. Deceased shareholders are a guaranteed way to shake up operations and seriously jeopardise the strength and unity of a business. By taking out shareholder protection insurance, shareholders enjoy the total peace of mind that should a fellow investor pass away, surviving shareholders will not have to worry about finding the money to purchase assets. Instead, they will receive pay-out funds that allow them to buy up the deceased's shares quickly and efficiently. This means business can return to normal as quickly as possible.
Support for family members
Althoughshareholders generally have an in-depth understanding of how to leverage their assets, inheriting family members often have no idea how to manage a portfolio. Most would rather receive money as this is far more useful to them. Cash payments can also help to relieve the stress that families face when losing a key breadwinner. When taking out shareholder protection insurance, company stakeholders can rest easy that their families will receive financial compensation in the case of their death. The policies guarantee a fair buy-out price, as well as a quick, easy and stress free process.
Illness and disability
As well as supporting fellow shareholders and family members in the case of death, shareholder protection insurance can also be used to cover serious illnesses. Given that the right agreements and policies have been put in place, a sick shareholder is able to sell shares to continuing shareholders. Should a shareholder fall ill, the knowledge that they have shareholder protection insurance will be a big weight off their minds.
The Claim Process:
- Incident Occurrence: An insured shareholder either passes away or gets diagnosed with a critical illness covered under the policy.
- Immediate Notification: The company or the remaining shareholders should promptly notify the insurance company about the event.
- Document Collection: The necessary supporting documents based on the nature of the claim should be gathered.
- Claim Form Completion: The claim form, provided by the insurance company, should be filled out in detail, ensuring accuracy.
- Submission: The completed claim form, along with the required supporting documents, needs to be submitted to the insurance provider.
- Claim Assessment: The insurer will assess the validity of the claim against the terms and conditions outlined in the policy.
- Communication: Once assessed, the insurer will communicate their decision—either an approval or rejection of the claim.
- Payout: If approved, the insurance proceeds will be paid out. Depending on the policy and agreement in place, the funds may be given to the company, the remaining shareholders, or directly to the deceased's estate or family.
- Completed Claim Form: This should be filled out comprehensively and accurately.
- Death Certificate: In case of a death claim, a certified copy of the deceased shareholder's death certificate is necessary.
- Medical Documentation: If it's a critical illness claim, relevant medical reports or documentation verifying the diagnosis are required.
- Shareholders' Agreement: A copy of the shareholders' agreement which often outlines the terms and conditions for buying out a shareholder's interest.
- Insurance Policy: A copy of the Shareholder Protection Insurance policy or, at the very least, its details and policy number.
- Company Valuation: Documents or recent financial statements reflecting the company's valuation might be needed to determine the value of the deceased or critically ill shareholder's stake.
- Proof of Premium Payments: Documentation showing that premiums were paid consistently and the policy was active during the time of the event.
- Identification: Valid ID of the claimant, which could be a representative of the company or one of the remaining shareholders.
- Any Additional Documents: Depending on the insurance provider's requirements and the specifics of the policy, additional documents or information may be requested.
Metropolitan is best at rendering quality services to their customers whether they are individuals or corporates. Metropolitan focus on establishing itself as a committed, knowledge driven and customer focused entity in the insurance industry.
