Businesses may want to protect the key directors and employees within their firm – perhaps the critical salesperson or the IT manager without whom the company will not function properly. Keyperson / shareholder/partnership protection can provide a fixed sum should the individual be unable to work or even die. The benefit will be designed to cover the firm’s expenses in meeting any emergency costs, recruiting a replacement employee, and protecting the future of the business.

If a shareholder were to pass away, the firm’s remaining shareholders or directors might want protection that enables them to promptly purchase the deceased’s shares from their estate to maintain control of their business. The same scenario also applies to partners in a firm.