PROTECT YOUR BUSINESS
No one likes to think about it.
But what would happen to your business if an owner passed away?
Are there key employees whose passing would adversely impact the business?
Key Person Life Insurance is one way to protect your business against an unfortunate loss.
WHO IS A KEY PERSON?
A key person could be anyone whose presence in the business is valuable enough that their loss could impact the viability or effectiveness of the business.
Examples include:
Owner
President / Vice President
Top Sales Rep(s)
Employee with knowledge that is difficult/impossible to replace
WHAT IS KEY PERSON LIFE INSURANCE?
Key Person Life Insurance is a life insurance policy that a company can purchase to protect the company against a key loss.
If the employee passes away, the company is named the beneficiary and would receive the death benefit.
This death benefit could be used to help the business make up for lost revenue or search for a replacement.
HOW DOES IT WORK?
The company purchases a life insurance policy on the employee.
The company pays the premiums.
The company is named beneficiary.
OTHER BENEFITS
The company has access to the cash value inside the policy. The cash value could be accessed to help finance captial expenditures.
Death benefit can be split between the company and the employee's family as a fringe benefit.
Death benefit is tax-free.