The value of key staff on the farm

farmer and ensure that mortgage/loan repayments etc are kept up.

Although Keyman insurance sounds akin to life assurance, it is a policy which covers a person who is alive but unable to assume their normal work duties.

COSTS

The cost of keyman coverage will generally vary based on the following factors: the key person’s age, gender and health; the business size; the nature of the business; and the value for which the key person is insured.

FBD Insurance estimate the cost of Keyman insurance to be (based on €100,000 cover for fixed term of 20 years)

Ω for farmer aged 30 on next birthday — monthly premium of €10 per month

Ω for farmer aged 40 on next birthday — monthly premium of €11.64 per month

Ω for farmer aged 50 on next birthday — monthly premium of €25.77 per month.

AGE PROFILE

While it may seem like an additional bill that many farmers can do without, especially at this time of year, we should be cognisant of the significantly older age profile of Irish farmers and as a result the likelihood of inability to carry out farm work due to illness or disability.

Farm safety campaigns have highlighted time and again the dangerous nature of farms as workplaces and all farmers should investigate personal accident insurance — even if they decide not to have Keyman insurance.