Why AdWorks Took Out Keyman Insurance

Protecting Adworks with Key Person Cover

“Although everyone at Adworks is important,” says Sue, “we realised some time ago that if we were to lose Daniel’s leadership and business acumen the company could face real hardship.

“We previously had a 5-year term key person contract in place for this reason, but when the policy came close to expiring we contacted our previous broker and were told that our adviser had since retired. We explained our position and waited to hear back from them but they never contacted us and the policy lapsed.

“We came across Drewberry when we were researching a new key person policy for Daniel. They stood out thanks to the excellent client reviews on their site. When we started talking to our Drewberry adviser we found that he had a number of useful ideas. He was also able to look across the whole of the market to find the best combination of premiums and cover for our needs.”

Longer-Term Keyman Insurance Proved a Better Solution…

Adworks’ Drewberry adviser, Sam Barr-Worsfold, recalls that when he first spoke to the company they were interested in renewing their cover but that no one had clearly explained the options open to them.

“One of the first things I suggested was taking out Keyman Life and Critical Illness Cover for the company’s MD so that the business could continue in the event of serious ill health as well as Daniel’s early demise.

“We also looked at how to avoid the problem of having to renew cover every 5 years. The company’s previous policy had just lapsed,” says Sam, “and while taking out another 5-year term contract would keep the premiums lower it was clear that the company needed longer-term protection.

“In the end, it made sense to take a 15-year policy term as this would save them money in the long term and spare them the ordeal of new underwriting every five years.”

We recommended a policy from Vitality, thanks to the company’s proportionate benefit approach to claims which means that, unlike most policies currently available, it’s not an ‘all or nothing’ proposition.

It’s possible to get a proportion of the cover paid out for a lot of illnesses that aren’t quite as severe but which could still mean that time needs to be taken off work.

Sam Barr-Worsfold
Independent Protection Expert