Business "Key Person" Insurance
Key Person Life Insurance is...
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Life insurance on an owner or key employee of a business, where the business pays for the policy and is the beneficiary. Designed to protect the business in the event of a key employee's death.
Why do businesses need "Key Person" insurance?
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To protect against outstanding loans, debts, and lost production.
- Businesses often purchase life insurance on owners or key employees to financially protect the business if an essential employee passes away. Key Person insurance helps pay for loans, mortgages, job search replacing the deceased, and securing the companies' financial well being, allowing the business to remain open and operational and ensuring all other employees still have a place to work.
What type of coverage do I need?
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Could be Term or Permanent
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What type is largely dependent on what is to be protected or accomplished with the policy. Working with a Broker who specializes in life insurance for businesses is the best way to get exactly what you need.
How much do I need?
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Depends on what is to be protected
- Any expenses that could be left behind or effect the business with the loss of an essential employee.
How long do I need it for?
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Until the Policy is needed or liabilities are no longer present.
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Key person insurance is needed until it can be determined the business has enough funds or would no longer take a great financial hit due to the loss of the "Key Person".
When should I get it?
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When other people depend on your business to provide for themselves or their family.
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Business owners are responsible for providing a workplace environment suitable for success for both the business and it employees, protecting the business's future is essentially protecting your employees future as well.
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