Corporate Critical Illness Cover
Protect your business if a key person is diagnosed with a serious illness.
Corporate Critical Illness Cover pays a lump sum to the business if a key person is diagnosed with a specified serious illness. It can be used to cover lost profits, recruitment costs, or loan repayments — providing financial stability during a difficult period.
What is Corporate Critical Illness Cover?
Corporate Critical Illness Cover is a critical illness policy taken out by a business on the life of a key person. If the key person is diagnosed with a specified serious condition — such as cancer, heart attack, or stroke — the policy pays a lump sum to the business. It can be arranged as a standalone policy or combined with Key Person life insurance.
Who is it suitable for?
Key Benefits
Tax Considerations
The tax treatment of Corporate Critical Illness Cover depends on the purpose of the policy. Where the policy is for income protection purposes (e.g. covering lost profits), premiums may be deductible as a business expense and the payout may be treated as a trading receipt. Where the policy is for capital protection purposes (e.g. repaying a loan), premiums are generally not deductible and the payout is not taxable. Tax advice should always be sought.
Tax treatment depends on individual circumstances and may be subject to change. We recommend seeking independent tax advice.
Example Scenarios
Director diagnosed with cancer
A company's managing director is diagnosed with cancer and cannot work for 12 months. The Corporate Critical Illness policy pays a lump sum to the business, covering the cost of a temporary replacement and the lost revenue during his absence.
Combined Key Person cover
A business arranges a combined Key Person life and critical illness policy for its founder. If the founder dies or suffers a critical illness, the business receives a payout — providing comprehensive protection in a single policy.
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Why Choose JK Insurance Brokers?
- Whole-of-market access
- FCA authorised & regulated
- No broker fees
- Business protection specialists
- Personal, one-to-one service
- UK-wide advice