A keyman is an important individual in the company who could be any of the following:

  1. Makes most of the company sales
  2. Controls and supervises corporate growth plans
  3. Oversees specialized skills training
  4. Ambassadors of the firm in key markets
  5. In charge of product expansion
  6. Makes part of the financial team

It all started as a simple venture of setting up a small eating place. Mr. Jappy now manages a chain of restaurants across Hong Kong and China. He has a head chef who is a well known, famous personality, whom has also received a number of awards. The chef takes control of designing attractive menus which continue to attract many customers to the restaurant and hence continuously

improves the business. Many did not know that Mr. Jappy was the owner of the successful restaurants, since he did not really have much culinary experience. He is however worried of the future of his business, should anything happen to his head chef.

He recently felt the impact after his head chef caught a flu bug and died from it. The company experienced a big loss. During this time, it was clear that Mr. Jappy needed to look for another  high profile head chef replacement that will fill in the shoes of previous head chef.

Lucky for Mr Jappy he had bought a US$1 million premium Universal Life plan for his most important employee, the head chef. The amount had coverage of US$4 million. Mr. Yap planned that he would distribute 10 percent of the proceeds to his head chef’s family in the event that he dies. The remaining 90 percent would be used to continue running the restaurants as he buys time to find an appropriate chef who will continue to meet his expectations.