Most normal key person insurance policies are taken out as either just a straight forward life insurance or a life and critical illness. But what happens if your key person has a car accident and badly damaged their leg for example. They haven’t died or been diagnosed with a critical illness but are certainly out of action for a good 6 months and unable to carry out their job. Financially this sort of problem could cripple your company especially if the person was bringing in the majority of income. To prevent this from being a problem companies are able to take out what’s called an income benefit as key man insurance. This benefit will pay out if the person is injured and unable to work. Depending on underwriting outcomes the cover will be offered for “own occupation” or “working tasks”. Own occupation is the better of the two and we will be discussing these in more detail in our next blog.Key man income protection benefits are paid on a monthly basis unlike normal life or life and critical illness key man, which is paid out as a lump sum. Benefits are worked out as a percentage of the companies income and the key persons contribution to that income. As normal, a questionnaire is carried out to asses the persons health which can obviously effect the premiums. Other factors which are taken into account are the occupation and the differed period. The longer you can defer the benefit the cheaper the cover will cost. But usually the minimum differed period will be one month. This means a person will have to be unable to work for at least a month before the premiums will pay out. Each insurance company is different and we would of course always recommend that any person looking to take out this cover would read the key facts document carefully.

We use a range of other insurance providers and their products may be more suitable for your needs

These articles are for information only and does not constitute as financial advice in any way

What is Key Person Insurance Therapy Benefit
As a Bupa member with an key man income protection policy, you are able to be reimbursed up to a maximum of fifty percent of the amount you pay to a maxiumum of £100 per policy year for a range of complementary therapy services.

These services include:
• acupuncture
• chiropractic
• homeopathy
• osteopathy
• physiotherapy

How does it work
BUPA may pay fifty percent of the amount you pay for the therapy services as shown below as part of your Bupa Key Person Income Protection policy to a maximum of £100 per policy year. This sum is to cover all of the therapy services you receive during the policy year and not for each type of service or item charged individually. Treatment must be provided by an acupuncturist, chiropractor, homeopath, osteopath or physiotherapist approved by us.

Which therapy services are included
Acupuncture, chiropractic, homeopathy, osteopathy or physiotherapy services provided by an approved practitioner. The service must be provided by a practitioner approved by Bupa, see page 6 for more information.
Is there anything Therapy Benefit doesn’t cover This benefit covers treatment only, associated prescription fees and medication administered are not covered. Your income protection policy may exclude certain conditions. If this is the case, we will not reimburse any therapy costs for any treatments related to the excluded condition.

This information was sourced from BUPA 2010

We use a range of other insurance providers and their products may be more suitable for your needs

These articles are for information only and does not constitute as financial advice in any way

The enhancements include:

• Benefit guarantee – by verifying your salary at application, BUPA guarantee that even if your situation changes you will receive the agreed amount if you make a claim
• Exclusion discounts – if  your medical history means that conditions such as back related or mental illness cannot be covered at underwriting, the premium will be reduced
• Best Doctors – all income protection policies will now have access to the Best Doctors service, providing clients with the opportunity to receive a second opinion about their condition from world renowned doctors
• Therapy Benefit – this benefit provides you with financial support for a range of complementary therapy treatments including acupuncture, chiropractic, homeopathy, osteopathy and physiotherapy up to a specified limit
• Trauma Benefit – The key person or life assured receive this benefit if a traumatic injury results in paralysis of the limbs, loss of sight, hearing, speech, hands or feet, or physical independence
• Fracture Cover Benefit – this optional benefit is payable if the key person or life assured suffers one of 18 listed fractures
• Hospital In Patient Benefit – if the key person or life assured is hospitalised through injury or illness for six nights or more we may pay up to £200 a night for up to 90 nights

These are some great benefits for people taking out key man income benefit through BUPA and something that we would be happy to discuss in more detail with you.

This information was sourced from BUPA June 2010

We use a range of other insurance providers and their products may be more suitable for your needs

These articles are for information only and does not constitute as financial advice in any way