Key Person Income Protection

No one wants to worry about what might happen to their business if a skilled employee can't work because of an injury or illness.

Our Key Person Income Protection pays out a monthly income at the end of the deferred period if the person covered is either unable to work because of an illness or injury or is unable to carry out a number of everyday tasks and meets our definition of incapacitated.

If the person covered meets our definition of terminal illness, they won't need to wait for the deferred period to end before we start making payments.

Flexible Key Person Income Protection

Your clients can choose their own cover. They can decide between level or increasing cover, select the length of their deferred period and choose how long they need their cover to pay out for.

Benefits of our Key Person Income Protection

  • Cover increase options - your clients can increase their cover in certain circumstances, without giving us any medical information.

  • Choice of payment periods - your clients can choose from one or two years, allowing them to tailor the cost to the business need.

  • Reassuring - we'll cover up to 75% of the gross profit attributable to the key person up to a maximum of £250,000 a year.

  • Personal support - Our Helping Hand Support Service provides access to independent support including a recruitment helpline which can help with sourcing cover for a key member of staff, as well as a legal helpline which can help with questions around employment law. The service also gives your clients and their partner and children access to practical and emotional support on their journey towards recovery.

  • Waiver of Premium (Sickness) is included at no additional cost.
  • Basis – single life
  • Premiums – guaranteed
  • Payouts – monthly income, once deferred period has ended
  • Payment of cover – level or increasing
  • Payment period – 1 or 2 years
  • Deferred period – 4,8,13, 26 or 52 weeks  
  • Term – 5-20 years
  • Age when cover starts – Minimum 18 attained, Maximum 59 attained
  • Age when cover ends –  Maximum 70 attained
  • Amount - 75% of the gross profit attributable to the key person up to a maximum of £250,000 each year

To help protect against the effects of inflation your clients can choose to increase the amount of cover over the term of their plan in one of two ways:

  • Fixed rate – at a chosen rate of interest (between 2% and 5%). There’s an extra cost for this option.
  • Index-linked rate – based on the change in the retail price index (between 2% and 10%). There’s an extra cost for this option.

The payments will continue until the first of the following happens:

  • The person covered recovers and returns to work.
  • The person covered is assessed as no longer meeting the definition of incapacitated.
  • The cover term ends.
  • The cover payment period expires.
  • The person covered dies. 

We won't pay a claim if:

  • It’s the result of intentional self-inflicted injury;
  • It's the result of an exclusion shown on the cover summary;
  • The person covered doesn't meet the definition of incapacitated in our plan details booklet;
  • If any medical or other evidence is not supplied when we ask for it.

Terms and conditions

For full terms and conditions, including our definitions under Key Person Income Protection see our plan details.

This website is intended for financial advisers only and shouldn't be relied upon by any other person. If you are not an adviser please visit

The Royal London Mutual Insurance Society Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. The firm is on the Financial Services Register, registration number 117672. It provides life assurance and pensions. Registered in England and Wales number 99064. Registered office: 55 Gracechurch Street, London, EC3V 0RL.