Swiss Life is to offer keyperson protection to employees of partnerships following the introduction ...
Swiss Life is to offer keyperson protection to employees of partnerships following the introduction of a new trust arrangement, writes Rachel Williams.
Under the new trust, any partnership with employees, such as a practice manager in a GP practice or a manager in a solicitor's office, will be able to take out keyperson income protection, critical illness or life cover.
Simon Barwell, personal finance manager at Swiss Life, said: "A growing number of practices take on people to manage the back office who then become key to the business, so when they are off the partners have to cover their work and cannot get on with their own jobs."
Prior to the launch, employees of partnerships could only be covered when the policy was held by one partner on the life of another. But this was complex to arrange.
Barwell said: "Every time a partner changed, the plan needed to be re-written. The new policy is written in trust for the benefit of the partnership as a whole, making critical illness and income protection much easier to arrange."
With the trust written to benefit the partnership cover is not affected when partners leave and join.
Barwell said Swiss Life had designed the trust as part of its bid to provide tailored protection solutions to the business market.
"This niche market has always been there and there has always been a need for this type of document - but no insurer so far has taken advantage of the opportunity."
