KEEP YOUR COMPANY RUNNING AFTER THE LOSS OF A KEY PERSON.
Individuals are the lifeblood of small businesses that may not survive the death of an owner, partner or key employee. Proceeds can give a business some financial breathing room as it adjusts to the loss and moves forward.
What is Key Person Business Life Coverage?
Key person insurance is a life insurance policy that a company purchases on the life of an owner, founder, executive, or any individual considered critical to business function. The company pays the premiums and is the beneficiary of the policy.
These premiums can be used as a financial cushion for any expense associated with the passing of the key individual.
Key Person Business Insurance Benefits
-
Financial Breathing Room
Following the loss of a key individual, the death benefit will help to cover the cost to recruit, hire, and train a replacement. It will also help provide a cushion if the business encounters any operational disruption cost, loss of productivity, loss of sales, or loss of clients.
-
Safeguard Your Business
The loss of certain key employees can have a devastating impact on your organization. Obtaining Key Person insurance protects you and your business as you stabilize, and strategize, and provides you with options rather than immediate bankruptcy.
-
Tax-Free, Flexible Deductions
Generally, deductions are tax-free when the policy is active and continuously funded. Funds can be borrowed from the cash value with a lien. Those distributions can be used for any expense including the purchase of real estate, replacement costs for staffing, staff bonuses, and retirement and retention.
