Who owns the policy
The business, it pays the premium and receives the benefit
Who is insured
Your key person: founder, director, partner or critical talent
Typical uses
Profit protection, business loan security, partner buy-out funding
What this plan does
- A lump sum to the company on the key person's death or critical illness, cash flow when the business is most fragile
- Buys time and money to recruit, train and replace critical expertise
- Reassures banks and financiers that loans stay serviceable, often requested alongside business financing
- Buy-sell funding between partners, so a partner's family is paid out fairly without forcing a fire sale
- Structured alongside your personal legacy planning, so business and family are settled separately and cleanly
Common questions
Who counts as a key person?
Anyone whose loss would materially hit profit or operations, typically founders, managing directors, partners, top producers or technical specialists. If the business would wobble without them, they qualify.
We're partners 50/50. Why does this matter?
Because if one of you passes, the surviving partner ends up in business with the family of the other, or forced to buy them out with cash that doesn't exist. A buy-sell funded by insurance settles it cleanly, at an agreed value.
Is this instead of my personal life insurance?
No, it complements it. Keyman pays the business; your personal policy pays your family. Mixing the two is how both end up underfunded. We plan them side by side: your business legacy and your personal legacy.
Life policies are protected by PIDM up to applicable limits; investment-linked structures carry unit-portion limitations. Refer to PIDM's TIPS brochure or contact AIA Bhd. or PIDM for details.
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