Momentum Key Person Insurance review 2023

It is prudent to insure the lives of key employees, and it may even be preferable to use an insurer […]

Momentum key person insurance

It is prudent to insure the lives of key employees, and it may even be preferable to use an insurer such as Momentum. Momentum key person insurance can help ensure that a company does not go out of business as a result of the death of a key employee. 

The use of the product does not guarantee business success. It can, however, support ongoing commercial activity.  Momentum key person insurance covers a company’s key personnel, such as directors and members of management.

However, in order to be covered by the insurance plan, an individual must work for the company. The company’s structure is irrelevant because the product can be purchased by both private and public companies.

The product’s tax advantages can benefit a business. Premiums paid to Momentum for key persons insured are tax-deductible up to a certain amount, lowering taxable income. 

Furthermore, there will be no tax due when a claim is submitted. As a result, the company will avoid paying taxes on the proceeds of the cover, including estate duty and income taxes.

When purchasing Momentum key person insurance, the amount of coverage required must be carefully considered. To determine the required cover amount, the purpose for which the insurance is required must be specified.

If a company has the appropriate amount of coverage for its needs, it will pay rates that are fair. Thus, a company can avoid being over or under insured.

Momentum key person insurance can benefit a wide range of businesses. Continue reading the discussion below to gain a better understanding of the Momentum key person insurance.

Momentum key person insurance summary 

Momentum Key Person Insurance is a policy that offers protection options for business owners and key personnel in the event of the insured’s death. 

The  Momentum Key Person Insurance also covers additional risks such as severe sickness and disability. Critical illness and disability insurance are available as stand-alone policies for key personnel.

The company can choose the amount of coverage for each key individual it wants to insure. If the insured is involved in an insured incident, the selected sum will be paid out. 

There is no minimum or maximum amount that can be covered, the company can select the best cover amount for each incident that is covered.

The premium amount is be determined by the outcome of the product’s medical underwriting process. Each key individual will be individually underwritten for the purposes of this product. 

Premiums per person insured may differ due to medical underwriting, even if they are the same age.

The cover amount is paid out following a successful claim. This money is given to the company, which it can use to ensure that it does not face any financial difficulties while replacing the key employee. 

Momentum, on the other hand, will not impose any restrictions on how the insurance payout will be used; rather, Momentum will leave it up to the business.

How the Momentum key person insurance works

Momentum key person insurance can only be acquired by businesses. This insurance product is acquired to ensure that a business is compensated for the loss of income should a key person in a business die or become disabled. The business that wants this product can apply by making a call back request on the Momentum website

The applicant will be required to provide the personal information of all key persons to be insured. Furthermore, the information pertaining to the company which seeks insurance for its key persons will have to be provided. The amount of cover per key person will need to be determined by the applicant. 

For the purpose of purchasing this insurance, each key person is underwritten separately. Therefore, even though the cover amount is the same, the premiums will vary. Momentum will provide a premium quote following a successful application that must be paid on a monthly basis. The company has the option of having a fixed cover for each important individual or accelerating premiums and coverage to beat inflation.

As soon as the business accepts the contract’s conditions, the coverage takes effect. Then, monthly premium payments will be required. The cover will be terminated if premium payments are not made. Should the business fail to pay the required premiums, all paid premiums would be lost.

Momentum will pay the business a lump payment in the event that a key person insured becomes permanently disabled or passes away. The funds can be utilized by the business to replace a key employee who was covered by Momentum key person insurance by making the changes that are required.

Advantages of the Momentum key person insurance 

  • Tax deductions are available for premium payments made to the policy.
  • Since the cover proceeds are tax-free, they won’t be included in the company’s taxable income.
  • The payout from the insurance coverage will cover the expense of replacing a key employee instead of the company funds.
  • Depending on a company’s needs, the coverage amount can be adjusted.
  • The product can be applied for remotely and underwriting can be done at business offices. 

Disadvantages of the Momentum key person insurance 

  • For some of the paid premiums, there is no cash back benefit.
  • The coverage will be terminated if the premiums are not paid on time. 

Conclusion 

Momentum’s key person insurance offers a traditional method of protecting important employees and guaranteeing business continuity in the event that one of them passes away or becomes disabled. This product can be purchased with the assistance of a financial advisor without running the danger of being either over or underinsured. Making pertinent calculations when taking out the product is a smart idea.


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