Guardian Life Key Person Insurance policy has been designed to protect a company from the financial impacts of losing their key human resources due to death or disability.
The monetary & non-monetary implications of losing such a critical member can be enormous. The Guardian Key Person Insurance is a Term Life Insurance Plan where the Sum Assured is payable in death or Total and Permanent Disability (TPD) of an individual life; Health Insurance may also be availed to supplement the product. This product can be your ideal solution for provisions during the loss of a critical human resource of your organization.
WHY GUARDIAN KEY PERSON INSURANCE PLAN?
GUARDIAN KEY PERSON INSURANCE UNDERWRITING GUIDELINES
WHAT TYPE OF BUSINESSES CAN GET COVERAGE?
Well regulated and recognized businesses are eligible for key person insurance coverage, with no set rules around the type of businesses who will qualify. If any business has a solid turnover with key person (s) who are responsible for the majority of profits or make a considerable contribution; key person insurance can be considered.
METHOD TO QUANTIFY COVERAGE (SUM ASSURED)
Minimum Sum Assured: BDT 10 Lac
Maximum Sum Assured (Lowest of the three)
10 times of the total annual compensation package for the Key Person which includes salary, bonuses and all other perks;
or 05 times the average net profit of the company for the past three years;
or 3.03 times the average gross profit of the company for the past three years
When there are many Key Persons in an organization to be covered under this scheme, then the total sum assured arrived at should be pro-rated for each Key Person in the ratio that his compensation package bears to the total compensation package of all the Key Persons
For 2 and 3, when more than one Key Person from the same organization is to be covered, the total cover cannot exceed the overall limit prescribed
Net profit: Profit after depreciation and tax
Gross profit: Profit before depreciation and tax
KYC (KNOW YOUR CUSTOMER) REQUIREMENTS (All KYC submitted should be self-attested by the proprietor)
KYC REQUIREMENTS (All KYC requirements duly attested by the authorized partner)
KYC REQUIREMENTS (All KYC requirements duly attested by the authorized signatory)
- Sum assured desired
- Name and signature of the person who is authorized to complete proposal papers
- The use of seal of the company
- NID card of the authorized signatory
- Address proof of business
- AML declaration (if not part of the application form)
- Key Person questionnaire duly signed by authorized person with seal and signature
- Proposal form duly filled up by insured and usual medical requirements on the life of the Key Person
TRUST & FOUNDATIONS
KYC REQUIREMENTS (All KYC requirements duly attested by the trustee)
DOCUMENTATION OF THE LIFE TO BE INSURED (KEY PERSON)