Guardian Key Person Insurance

Introduction Feature and Benefit Term and Condition

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?

Financial protection against business risk
Boost the spirit and morale of the one most critical to your business
Substantial coverage amounts at unbelievably nominal prices
Protection of company’s valuation & prospect

Coverage upon death or Total and Permanent Disability (TPD)
Minimum coverage: BDT 10,00,000/- (Ten lac)
Maximum coverage: Any amount needed to secure the business (As per Guardian Life’s financial underwriting guidelines)
Premium payment mode: Regular (Yearly) and Single
Beneficiary is the employer organization of the Key Person - the organization may provide a part of the payout to the key person’s family
Age limit: Between 18 - 60 years
Policy term: 3 - 25 years
Maximum maturity age: 70 years
Supplementary benefits: Health insurance plan may be availed with the product

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

NOTE:

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

DOCUMENTATION

SOLE PROPRIETORSHIP

KYC (KNOW YOUR CUSTOMER) REQUIREMENTS (All KYC submitted should be self-attested by the proprietor)

Recent photograph of sole proprietor
NID of sole proprietor
Address proof of business
AML (Anti Money Laundering) declaration (if not part of the application form)
Proposal form duly filled up by insured and usual medical requirements on the life of the Key Person
Key Person questionnaire duly signed by sole proprietor with seal and signature

INCOME PROOF

Copies of income tax returns of the firm for preceding three years

Copies of audited Balance Sheets and Profit and Loss A/Cs for preceding 3 years

Proof of Key Person salary contract and individual ITR (Income Tax Return) receipt for last 3 years or less as applicable

PARTNERSHIP

KYC REQUIREMENTS (All KYC requirements duly attested by the authorized partner)

Partnership deed along with registration certificate (if registered)
Letter of authority in favor of partner signing the proposal
NID of the authorized partner
Address proof of business
AML (Anti Money Laundering) declaration (if not part of the application form)
Key Person questionnaire duly signed by authorized partner with seal and signature
Proposal form duly filled up by insured and usual medical requirements on the life of the Key Person

INCOME PROOF

Copies of income tax returns of the organization/firm for preceding three years
Copies of audited Balance Sheets and Profit and Loss A/Cs for preceding 3 years
In case of employees: Proof of Key Person salary contract and individual ITR (Income Tax Return) receipt for last 3 years or less as applicable

COMPANY

KYC REQUIREMENTS (All KYC requirements duly attested by the authorized signatory)

Certificate of incorporation
MOA (Memorandum of Association) and AOA (Article of Association)
Certified true copy of board resolution passed in the meeting of board of directors containing following information:

- 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

INCOME PROOF