The calculator allows advisers to work out the probability of a key employee dying before retirement.
By entering the employees’ gender, age and the term over which the business would be at risk (either each employee’s predicted retirement age or a set term), the calculator is able to produce a percentage risk, based on ONS Life Tables for England and Wales.
For example, a business with three key employees, each aged 40 (two male and one female) has a 29.8% chance of one of those employees dying before they reach age 65.
To provide cover for all three key employees through PruProtect could cost £55.29 a month.
This is based on a quote for Key Person Cover for two males and a female life, all non-smokers aged 40, for a sum assured of £150,000 each and a 25 year term, covering them until they reach 65.
PruProtect said by demonstrating in these stark terms what could happen within the business, advisers are able to expand the discussion on protection and ensure adequate cover is taken.
