Keyman Insurance Policy:
No room for business risks anymore!

Why take needless business risks when securing your business is now easy with the right keyman insurance.

Insure your key person. Assure your business.

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Keyman insurance policy Pazcare

What is a keyman insurance policy?

Along with a great team, there are always catalysts that a company relies on to move forward in the right direction. These people who are critical to the business, and are responsible for the growth of the organization are called Keyman/Key person.

A Keyman insurance is a type of insurance where the employer pays the premium for the life insured of the key person to compensate for any financial losses due to the unexpected death of the key person.

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Why buy a keyman insurance policy?


Grow through the pain

Yes, it’s hard to lose someone who has been a backbone. But, try getting back on your feet with all the possible help you could get.


Go big on talent retention

By insuring the key person, you make them see the value they add. This boosts the morale of the person and helps in retaining the best talent.


Attract investors

Keyman insurance policy is a great source of financial recoup. It enables banks and investors to believe that there is no room for major financial loss.


Cut back on taxes

On buying keyman insurance, you can claim tax benefits for the premium as a business expense under section 37(1) of the income tax act.

Features of Keyman insurance


Bereavement benefit

The company gets payment equivalent to the sum insured in case of the death of the key person.


Succession planning

Helps with the cost of hiring new talent or training an existing employee as a replacement for the key person.


Manage loss/debt

Make up for any loss of profit/debt due to the death of the key person.


Use as assurance

Keyman insurance policy can be used as a guarantee for business loans and can be put towards shareholdings or partnership interests.

Group term life insurance companies in India

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Claim settlement ratio

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Max life insurance company
Aditya Birla Sun life insurance company
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What losses are covered in the Keyman insurance policy?

Loss incurred from the reduced profit for the company in the absence of the keyman costs involved in replacing the keyman.

Keyman insurance policy taxability

The premium paid is eligible for business expense deduction according to the provisions of section 37(1) of the Income Tax Act. The claim received will be treated as a business income in accordance with the provisions of the Income Tax Act.

What does your keyman insurance cover?

A keyman insurance policy usually oversees the below three numbers and considers the least of all as the sum assured cover.

10X salary of the insured


3X average gross profit


5X average net profit

Who should buy Keyman insurance?

Keyman insurance is important for any business that involves few individuals as the critical source of growth. This also includes businesses that want to withstand any financial loss due to the loss of important individuals and continue growing sustainably and profitably.

Why buy keyman insurance from Pazcare?

Ease of securing the right policy

You don’t have to break your mind about finding the right option. Pazcare provides you with multiple options and helps you find one that fits your needs and budget.

Competitive pricing

Pazcare gets you the lowest cost possible making your important business decision easy and worthwhile. Get mutilple quotes from different insurers and choose the best.

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How to claim Keyman insurance?

  • The business entity is the proposer and the key person is the life to be insured.
  • Premiums are paid by the business.
  • In the eventuality of the key person, the business gets the sum assured under death benefit.

Documents required for Keyman insurance policy

  • Application form signed by the insured and the authorized person on behalf of the company
  • Age proof of insured
  • Board resolution allowing for the purchase of a Keyman insurance and appointment of authorized signatory
  • ITRs/ Audited book of accounts including P&L accounts/ Balance sheets of the company with all schedules for the last 3 years
  • KYC - POA & POI of Company and Life assured
  • Personal ITRs of Keyman for the last 3 years with computation of Income
  • Memorandum of Association & Articles of Association / Partnership deed of the Company
  • Keyman endorsement & Keyman Questionnaire
  • Detailed resume of Keyman
  • Beneficial Owner Declaration, along with KYC of all stakeholders

Frequently asked questions about keyman insurance policy in India

What is a keyman insurance policy?

Keyman insurance is the insurance policy where the employer pays the premium to cover any financial losses incurred due to the sudden death of the employee who is critical to the business.

Benefits of keyman insurance?

Keyman insurance is highly beneficial for businesses that are dependent on the key person who aids in the growth and profit of the company. Keyman insurance covers you from the losses due to the unfortunate death of the key person and risking the business.

How much does a Keyman insurance cost?

The premium paid for the Keyman insurance is generally not fixed and depends on factors such as age, gender, health, compensation of the insured, and the type of coverage your business needs.

Does the keyman insurance policy come under the income tax act?

Yes, the keyman insurance policy comes under the Income Tax act. The premium paid for the keyman insurance can be claimed as a business expense under Income Tax Act. Also, the proceedings for the Keyman insurance are tax-free.

Which losses are covered under keyman insurance?

Keyman insurance covers financial losses due to the reduced profit, debt, etc., caused by the unexpected death of the key person of the company.