Keyman insurance quotes: what actually decides yours
Nobody can hand you keyman insurance quotes in one click, and any page that says otherwise is collecting your details rather than pricing your risk.
A real quote comes out of an underwriter, and it turns on a small number of facts about one person. This page shows you which facts, how far each one moves the number, and what cover you are likely to need — worked through before you speak to anybody.
We are not an insurance provider, a broker, or a regulated financial adviser. keyperson.quest is an independent information and comparison resource. We hold no FCA authorisation, no partnerships with insurers, and we take no commissions or referral fees.
Nothing on this page is a quote, an offer, or financial advice. Every figure here is illustrative modelling from published market data. Before you buy any policy, take advice from a qualified, regulated professional — you can check any firm on the FCA Financial Services Register, and free impartial guidance is available from MoneyHelper.
Three kinds of person get insured, and they do not price the same
Underwriting starts with one individual, so the first question is not how much cover but on whom. The three cases below cover almost every key person policy written for a UK business, and they differ in how much cover is justified rather than in what the policy does.
Cover for directors →
Tax treatment →
Six facts decide the price. One of them decides most of it.
Every key man insurance quote in the UK is built from the same short list. What varies between insurers is how hard each factor is weighted, not which factors they use.
The panel shows each input with the swing it produces in this site's own premium model. Age is not merely the largest — it is larger than the other five put together.
Swings are the multipliers this site's cover calculator applies. They model relative cost so you can see what is driving the figure. They are not prices.
Cover is an arithmetic, not a preference
Before any premium means anything you need a cover figure, and there is a settled way to reach one. This site's calculator sums three things: the profit contribution you would lose, what it costs to recruit and train a replacement, and any business debt secured against that person.
The premium it then shows moves on age, on smoker status and on cover type, using the same rates as the calculator page. Every step is shown, so you can see what is producing the figure instead of being handed a total.
Nothing you type here leaves your browser. Illustrative estimate only — not a quote, and not advice.
Nine insurers, and the one column that decides where you start
Nine insurers write key person cover in the UK. On maximum life cover six of the nine are identical, so that column separates almost nobody. On application route they split cleanly in two, and that split decides whether you can begin on your own at all.
Three — Scottish Widows, Canada Life and LV= — are reachable only through an FCA-authorised adviser. For a third of this market, "get a quote" means "find an adviser first".
Premiums are deliberately not compared here. They depend on age, health, occupation, term and smoker status, so a premium column would be a made-up number wearing a table's authority.
What businesses like yours actually insure for
A cover figure you have calculated is worth checking against what comparable UK businesses arrive at. The ranges below are typical rather than prescriptive, and the marker on each bar is the mid-point.
The spread between sectors is real and it is about replaceability, not about size. A lead developer holding the architecture of a product is harder to replace than a retail operations director with a documented supplier book, and the cover reflects it.
If your own number lands far outside your sector's band, that is not necessarily wrong — but it is worth being able to say why before an underwriter asks.
The question behind every key person insurance quote
Price only matters if the thing pays out. In 2024 UK protection insurers paid £8.0 billion in claims — close to £22 million every day — and accepted 96.9% of the claims made.
The breakdown matters more than the headline. Life claims are the largest block by a distance; total permanent disability is a very small one. Key person cover pays on death, and on a defined list of conditions if critical illness is added. Long-term incapacity that is not on that list is a different product.
If that is the risk you are actually worried about, key person income protection is the thing to read next, not a cheaper quote.
The insurer, the adviser, and this page
People searching for keyman insurance quotes — or a key man or key person insurance quote — are often really trying to work out who to talk to. Three things are involved and they are easy to confuse, because all three use the word compare.
Only one of them can give you a price, and only one of them can give you advice. This page is the third thing on that list, and it is the one with no regulatory permission of any kind.
That is stated here rather than in a footer, because it changes what you should do with everything above it.
Key person insurance comparison options
Key person insurance — also known as keyman insurance or key man insurance — is a business protection policy that pays out if a crucial employee, director or owner dies or becomes critically ill.
The payout goes to the business, and helps it survive the financial impact of losing someone essential. Three things it is normally used for:
Compare key person insurance providers and options → · What is key person insurance?
The four pages people go to next
Compare providers
Compare key person insurance from top UK insurers. Find the best policy for your business.
Quote guide
What insurers ask for before they quote, and how to compare premiums once you have them.
Cost guide
How much does key person insurance cost? Typical UK premiums and what affects pricing.
Limited company
Key person insurance for limited companies. Tax treatment and director cover guide.
How key person insurance comparison works
When you compare key person insurance options, this is the process from start to finish. Many UK businesses also document their insurance strategies through UK SRS sustainability reporting to demonstrate comprehensive risk management for stakeholders.
- Identify key people. Work out who in your business would cause significant financial loss if they died or became seriously ill.
- Calculate their value. Use our calculator to estimate the cover amount based on their profit contribution and replacement cost.
- Choose cover type. Decide between life cover, critical illness, or combined protection based on your risk assessment.
- Compare providers. Compare options from UK insurers. Premiums vary significantly between providers for the same cover.
- Business pays and owns. Your business pays the premiums and receives any payout directly. The key person does not need to do anything.
Why does your business need key person insurance?
Every business has people who are critical to its success — whether full-time directors, key employees, or fractional executives who work part-time but deliver strategic value.
Key person insurance ensures your company can survive and recover if you lose them unexpectedly.
Types of key person insurance cover
Key person life insurance
Pays a lump sum if the key person dies. The most common form, providing funds to cover immediate losses and find a replacement. Death benefit paid to the company; typically £100k–£1m+ cover; potentially tax deductible.
Key person critical illness
Pays out if the key person is diagnosed with a serious illness that prevents them working. Covers conditions like cancer, heart attack and stroke. Lump sum on diagnosis; commonly combined with life cover.
Shareholder protection insurance
Enables surviving shareholders to buy out a deceased partner's shares, preventing shares passing to family members or outsiders. Funds share buyback; protects the ownership structure; works with a cross-option agreement.
Relevant life insurance
Tax-efficient death-in-service benefit for directors and employees. The company pays premiums as a business expense and the payout goes to the employee's family tax-free. Corporation tax deductible; no P11D benefit; payout outside the estate.
How much key person insurance do you need?
Calculate the right level of cover based on the financial impact of losing your key employee. Four components, in the order the calculator applies them.
How much does key person insurance cost?
Key person insurance is more affordable than you might think. Premiums depend on the key person's age, health, and the level of cover.
| Cover | From | Basis | Includes |
|---|---|---|---|
| £100,000 | £20/month | Healthy non-smoker, age 30–40, 10-year level term life cover | Life cover only |
| £250,000 | £45/month | Healthy non-smoker, age 35–45, 10-year level term life cover | Life + critical illness — most popular; tax efficient |
| £500,000 | £85/month | Healthy non-smoker, age 40–50, 10-year level term life cover | Maximum protection; multiple key people; enterprise level |
Illustrative — based on aggregated public UK market data, November 2025. Not quotes.
Compare keyman insurance options → · Use our calculator · Compare key person insurance
Is key person insurance tax deductible?
The tax treatment depends on how the policy is structured and what it is for.
May be tax deductible if
- The policy is solely for business benefit
- It covers loss of profits only, not loans
- The key person is an employee
- The policy term matches the service expectation
Not tax deductible if
- The policy is used for loan protection
- The payout goes to the key person's family
- The key person is a shareholder, not an employee
- The policy provides personal benefit
Tax rules are complex and depend on HMRC guidelines for key person insurance — the “Anderson rules”. Always consult a qualified accountant for advice specific to your situation. Read our key man insurance tax guide →
Explore our insurance guides
Learn more about key person insurance and related business protection options.
Keyman insurance
Complete guide to keyman insurance (key man insurance) for UK businesses.
Shareholder protection
Essential for partnerships and limited companies — protects against loss of shareholders.
Income protection
Replace income if key employees cannot work due to illness or injury.
Best providers UK
Compare top key man insurance providers including Aviva, Zurich and L&G.
UK life insurance guides
Comprehensive life insurance guides for businesses, families and individuals. From tax-efficient business cover to affordable family protection.
Business life insurance
Complete guide to business life insurance for UK companies. Tax-efficient cover for directors and employees.
7 specialist guidesTerm life insurance
Affordable term life insurance for a fixed period. The UK's most popular type of life cover.
Compare types & costsWhole life insurance
Whole life insurance that never expires. Guaranteed payout for IHT planning and lifelong protection.
Lifetime cover explainedOver 50s life insurance
Guaranteed acceptance over 50s life insurance with no medical questions. Compare UK plans.
Compare plansMortgage life insurance
Protect your home with life insurance for your mortgage. Decreasing term cover explained.
Family life insurance
Affordable family life insurance from £5/month. Protect your partner and children.
Pre-existing conditions
Life insurance with anxiety, diabetes, high BMI and other conditions. Your options explained.
Business health insurance
Corporate private medical insurance for UK businesses. Reduce sick days, retain talent.
Key person insurance by industry
Different industries face different key person risks. Here is typical guidance for common UK business sectors.
| Industry | Typical cover range | Key risks | Who to cover |
|---|---|---|---|
| Construction & trades | £200k–£500k | Project delays, contract penalties | Site managers, qualified engineers |
| Technology & software | £300k–£1m | IP loss, client relationships | CTOs, lead developers |
| Professional services | £250k–£750k | Client portfolio, compliance | Partners, senior consultants |
| Healthcare & dental | £300k–£800k | Patient lists, specialist qualifications | Lead practitioners, practice owners |
| Retail & e-commerce | £150k–£400k | Supplier relationships, brand knowledge | Buyers, operations directors |
| Manufacturing | £200k–£600k | Technical expertise, quality standards | Production managers, quality engineers |
Cover ranges are general guidance only and will vary based on your specific business circumstances. Use our calculator for a personalised estimate →
Key person insurance in the UK
Figures shown are general market information and may not reflect your specific situation. We are a comparison and information site, not an insurance provider.
UK protection market data
The two series behind the claims and sector dioramas above, in full.
| Claim type | Paid in 2024 |
|---|---|
| Life | £4,025m |
| Whole of life | £1,532m |
| Critical illness | £1,443m |
| Income protection | £969m |
| Total permanent disability | £33m |
| Total | £8,002m — 96.9% acceptance rate |
Source: ABI & GRiD protection claims data 2024, published July 2025. Reported at the time as a record £8bn payout. Only 42% of UK consumers have protection policies (FCA, Dec 2025), in what is the 3rd largest insurance market in the world (ABI, 2025).
| Sector | Range | Typical |
|---|---|---|
| Technology & software | £300k – £1.0m | £650k |
| Healthcare & dental | £300k – £800k | £550k |
| Professional services | £250k – £750k | £500k |
| Manufacturing | £200k – £600k | £400k |
| Construction & trades | £200k – £500k | £350k |
| Retail & e-commerce | £150k – £400k | £275k |
Typical cover amounts based on roughly ten times senior employee salaries by sector. Actual requirements vary by business size, revenue and the key person's role.
Key person insurance FAQs
Key person insurance (also known as keyman insurance or key man insurance) is a life insurance policy taken out by a business on the life of an essential employee, director, or owner. If that key person dies or becomes critically ill, the policy pays out a lump sum to the business to help cover financial losses, recruit a replacement, or repay debts.
Key person insurance costs vary based on the key person's age, health, cover amount, and policy term. Typical premiums range from £20–£100+ per month for £100,000–£500,000 of cover. Younger, healthier individuals cost less to insure. The average UK business pays around £30–£60 per month for adequate key person protection. See our full cost guide.
Key person insurance premiums may be tax deductible as a business expense if the policy meets HMRC criteria: it must be solely to benefit the business, cover loss of profits (not loan protection), and the key person must be an employee. If the payout is to cover trading losses, it's typically taxable as trading income. Read about tax treatment.
Key person insurance is essential for businesses that rely heavily on specific individuals — founders, directors, top salespeople, or employees with unique skills or client relationships. SMEs, startups, partnerships, and family businesses are particularly vulnerable to the loss of key personnel. If losing someone would significantly impact revenue, client retention, or operations, key person cover is recommended.
Key person insurance pays out to the business to cover financial losses when a key employee dies or becomes ill. Shareholder protection insurance pays out to surviving shareholders/partners to buy the deceased's shares from their estate, preventing shares going to family members or outsiders. Many businesses need both types of cover for complete protection.
Calculate key person insurance cover based on: the person's contribution to profits (typically 2–5x their annual profit contribution), cost to recruit and train a replacement (6–24 months salary), any loans or debts secured against them, and client relationships at risk. Most UK businesses insure key people for £100,000–£1,000,000 depending on their role and company size.
Yes, key person insurance can include critical illness cover as well as life cover. This pays out if the key person is diagnosed with a specified serious illness (cancer, heart attack, stroke, etc.) that prevents them working. Combined life and critical illness key person policies provide more comprehensive protection for your business.
If a key person leaves the company, you have several options: cancel the key person insurance policy and stop paying premiums, transfer coverage to a new key person (subject to underwriting), convert to personal cover for the individual, or maintain the policy if they might return. Most businesses cancel and take out new cover on their replacement.
Hi, I'm Dan
I created Key Person Insurance UK to help business owners like you find the right key person insurance protection.
After seeing too many businesses struggle to navigate the complex world of keyman insurance, I built this platform to make comparing options simple and straightforward.
Whether you're protecting a founder, director, or essential employee, I'm here to help you find the best key man insurance cover for your UK business.
Trusted resources & guides
Learn more about key person insurance from authoritative sources, and explore our comprehensive guides.
Trusted sources
Wikipedia — Key person insurance BBC News — Business & economy Financial Times — Insurance sector Forbes — UK business insurance guide Legal & General — Key person insuranceProtect your business
Don't leave your business vulnerable. Compare key person insurance information from UK providers and protect what you've built.
