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Key Man / Key Person Life Insurance
>Key man or key person insurance is insurance purchased on the life of a key employee or owner of a company. >It's needed to prevent lost sales or revenue, and hiring of interim staff until a permanent replacement is found. How Does It Work? >Replacing a key person takes time and money and could possibly cost the business valuable clients during the transition. >The tax-free policy proceeds from key person life insurance can cover financial losses that occur at the death of a key person. >This helps assure continuity of the business for employees, customers and creditors. >It can serve to affirm the key person’s value to your business, which may strengthen the relationship. Why Buy Key Man Life Insurance? >Coverage is a business asset that enhances your company’s creditworthiness for commercial borrowing. >The policy’s cash value may be available to your business through a withdrawal or loan if needed. >The policy can be transferred to the employee at retirement as a bonus. >The business pays the premiums and they are non-deductible. |
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