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The Ultimate Guide to Keyperson Insurance from Employee Benefits Asia

Ultimate Guide to Keyperson Insurance

A comprehensive guide Keyperson Insurance including health insurance & life insurance.

Table of Contents

Keyperson Health Insurance 

In today’s highly competitive business environment, companies are more aware than ever of the invaluable role key employees play in their success. These individuals, often referred to as keypersons, possess unique skills, knowledge, and connections that are crucial to the operation and growth of the business. Losing such a person, whether temporarily due to health issues or permanently due to death, can have severe financial implications. This is where keyperson insurance comes into play.

Keyperson insurance, both health and life, provides a safety net for businesses, ensuring they can navigate through challenging times without suffering significant financial losses. This guide will delve into the two main types of keyperson insurance: Keyperson Health Insurance and Keyperson Life Insurance.

Keyperson Health Insurance Providers

There is no shortage of insurance providers who offer group health insurance to companies in Asia. They include, but are not limited to:

  • Allianz
  • April
  • AXA
  • Bupa
  • Cigna
  • Generali
  • Henner
  • Healthcare International
  • Liberty
  • Lloyd’s of London
  • Luma
  • Morgan Price
  • MSH
  • Now Health
  • Optimum Global
  • Pacific Cross
  • VUMI
  • William Russell

         With so many options, we recommend using a reputable insurance broker in your search for group health insurance. It saves you time, hassle & headaches of sourcing quotes, understanding them & putting them together in an apples-to-apples comparison.  Just use a broker like EB Asia and get an expert on your side and added customer service without any additional charges. 

What is Keyperson Health Insurance?

Keyperson health insurance is a specialized type of health insurance policy designed to cover the medical expenses of crucial employees within a company. This insurance focuses on delivering keypeople quality insurance and a good user experience. This focus ensures that the company can continue to support and retain their key employees by providing them with top-notch healthcare as part of their employee benefits.

Who is Keyperson health insurance for? 

Keyperson health insurance is intended for essential employees whose absence would significantly impact the business’s operations. These can include executives, senior managers, or anyone with unique skills critical to the company’s success. Often, these policies also extend coverage to the immediate family members of the keypersons, ensuring comprehensive protection and peace of mind.

Quality Providers & User Experience

When selecting keyperson health insurance, it’s crucial to choose providers known for their high-quality service and excellent user experience. Top providers offer seamless interactions, clear communication, and efficient claims processes. This focus on quality not only ensures that keypersons receive the best possible care but also reflects positively on the company’s commitment to its employees’ well-being.

Worldwide Coverage

Keypeople often have roles that require frequent travel or even relocation. Therefore, it’s essential that their health insurance offers worldwide coverage. This means they are protected no matter where they work, live, or travel, providing a comprehensive safety net that aligns with their dynamic lifestyle.

Comprehensive Benefits 

 

A robust keyperson health insurance policy provides comprehensive benefits with high coverage limits. These benefits typically include inpatient and outpatient care, specialist consultations, surgeries, and emergency medical services. High coverage limits ensure that keypersons can access the best possible medical care without financial constraints.

Executive Annual Health Check

 

Preventive care is a cornerstone of keyperson health insurance. Many policies include an executive annual health check, which allows key employees to undergo comprehensive health screenings. These checks are crucial for early detection of potential health issues, ensuring that keypersons maintain optimal health and productivity.

Global Direct Billing

 

Global direct billing is a convenient feature of keyperson health insurance. It allows policyholders to receive medical treatment without paying upfront and then waiting for reimbursement. Instead, the insurance provider settles the bill directly with the healthcare facility, streamlining the process and reducing financial stress for the keyperson.

Modern Member Portals or Apps

 

Keypeople often have roles that require frequent travel or even relocation. Therefore, it’s essential that their health insurance offers worldwide coverage. This means they are protected no matter where they work, live, or travel, providing a comprehensive safety net that aligns with their dynamic lifestyle.

Fast Reimbursements (When Needed)

 

Despite the convenience of direct billing, there are instances where reimbursements are necessary. Keyperson health insurance providers should offer fast and efficient reimbursement processes. This ensures that keypersons are not financially burdened and can focus on their recovery and return to work.

Excellent Customer Service

 

Excellent customer service is a hallmark of quality keyperson health insurance providers. Responsive, knowledgeable, and empathetic customer service teams can make a significant difference in the overall experience. They help navigate the complexities of health insurance, resolve issues promptly, and provide support during stressful times.

Get Quotes for Keyperson Health Insurance

 

To get started, please express interest by flling out the digital questionnaire below or directly book a discovery chat with us. 

Keyperson Life Insurance

Which benefits you offer is likely one of the first things considered for any group health insurance. There are many benefits, but they broadly fall into one of the following benefit categories.

Inpatient

For overnight stays in the hospital for more major things like surgery, cancer, recovery & more

Outpatient

For minor visits to a doctor, where you get basic treatment and go home the same day

WEllness

Sometimes part of Outpatient, wellness can be annual health checks, mental health & more

Dental

Dental includes Major & Minor dental to cover everything from basic visits & surgery

Maternity

Covers everything from pre-natal, routine delivery, complications, vaccines & more

Evacuation

Usually included by default, evacuation is important to have due to the high costs for this service

Life Cover

Optionally include life insurance benefits with your plan, from term-life, critical illness & more

EAP

 help your employees with personal or professional matters with an Employee Assistance Program

Which benefits you take is ultimately up to you & varies by organization. We can help advise based on the norms of your industry, trends & from our experience. 

If you’re not sure which benefits to include, we will provide you a range of quotes that include various levels of each benefit so you can understand them. By having a wide range of providers, we will recommend options that strike the right balance between the cost & benefits. 

Introduction to Keyperson Life Insurance

 

Keyperson life insurance is a life insurance policy taken out by a business on the lives of its most critical employees. In the event of the death or disability of the insured keyperson, the policy provides a financial payout to the company, helping it navigate through the loss and continue its operations smoothly.

How Keyperson Life is Different from a Normal Policy

 

Unlike a standard life insurance policy, which primarily aims to provide financial security to an individual’s family, keyperson life insurance is designed to protect the financial stability of the business. The company is both the policy owner and the beneficiary, ensuring that the business receives the necessary funds to mitigate the impact of losing a key employee.

Identifying Key Persons in Your Business

 

Identifying who qualifies as a keyperson within a business is a crucial step. Typically, keypersons are those whose skills, experience, and connections are irreplaceable in the short term. This can include top executives, senior managers, lead engineers, or anyone whose role is pivotal to the company’s success.

Financial Benefits and Protection

 

The primary purpose of keyperson life insurance is to provide financial benefits and protection to the business. The payout from a keyperson life insurance policy can be used in various ways to stabilize the company, such as covering lost profits, recruiting and training a replacement, and reassuring stakeholders and investors of the company’s continued viability.

Get Quotes for Keyperson Life Insurance

 

How Keyperson Insurance Safeguards the Company’s Finances

 

Keyperson insurance safeguards the company’s finances by providing a financial cushion in times of crisis. The sudden loss of a keyperson can disrupt operations, impact revenue, and strain resources. The insurance payout helps cover immediate expenses, maintain business continuity, and ensure that the company can weather the storm without severe financial repercussions.

Scenarios Where Keyperson Insurance is Beneficial

 

Keyperson insurance proves beneficial in several scenarios, such as:

  • Unexpected Death: The sudden death of a key employee can leave the company in turmoil. The insurance payout provides financial support to manage the transition.
  • Critical Illness or Disability: If a keyperson becomes critically ill or disabled, the business can use the insurance payout to cover their absence, including hiring temporary or permanent replacements.
  • Retention and Recruitment: Keyperson insurance can also be a tool for retention and recruitment, demonstrating to key employees that the company values their contributions and is prepared to invest in their security.

Keyperson Life Benefit Options

 

Keyperson life insurance policies offer various benefit options to cover different scenarios:

Death

In the event of the keyperson's death, the policy provides a lump-sum payout to the company. This financial support can help cover immediate expenses, stabilize operations, and fund the search and training of a replacement.

Critical Illness

If the keyperson is diagnosed with a critical illness, the policy can provide a payout to cover medical expenses, treatment, and any other costs associated with their absence. This ensures that the company can continue functioning while the keyperson recovers.

Disability

In cases where the keyperson becomes disabled and can no longer perform their duties, the insurance payout can be used to support the company's operations, including hiring and training new staff or compensating for lost productivity.

Tax Implications

 

Understanding the tax implications of keyperson life insurance is essential for businesses to maximize their benefits and comply with regulations.

Tax Benefits for the Business

Premiums paid for keyperson life insurance are generally considered a business expense and may be tax-deductible. This can provide significant tax benefits to the company, reducing the overall cost of the insurance policy.

Tax Treatment of Policy Payouts

The tax treatment of policy payouts depends on various factors, including the jurisdiction and the specific terms of the policy. Typically, the payout is received tax-free by the company, but it’s important to consult with a tax professional to understand the specific implications for your business.

What Documents are Typically Required & Why

 

To obtain keyperson life insurance, several documents are typically required to assess the company’s financial stability and the keyperson’s role within the business. These include:

3 Years’ Audited Accounts

Audited accounts provide a clear picture of the company’s financial health and stability. Insurers use this information to assess the level of risk and determine the appropriate coverage amount.

Copy of Certificate of Incorporation

The certificate of incorporation verifies the legal status of the business. It ensures that the company is a legitimate entity and eligible for insurance coverage.

Copy of Shareholders Register

The shareholders register details the ownership structure of the company. This document helps insurers understand the key stakeholders and the distribution of ownership, which can influence the terms of the policy.

Full Medical Underwriting

We understand that many companies need to get quotes as part of their tendering process, even if they have no intention to change. At Employee Benefits Asia, our renewal process is simple:

Summary

There are many variables to consider when starting or renewing a group health insurance policy. Cut through the whitenoise by using a professional broker like Employee Benefits Asia to ensure your employees:

  1. are adequately covered
  2. at a price that works for your organization
  3. have a smooth user experience
  4. have modern technology at their fingertips
  5. have year-round customer service & someone on their side when something happens

Afterall, you’re providing them an employee benefit, not an employee headaches. 


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