Key Person Insurance
Key Person Insurance is a life insurance policy that a business purchases on the life of a key employee to help the company survive financially if something were to happen to the employee. The key person policy can either be term or permanent insurance.
Life insurance death benefits can potentially:
• Provide tax-free proceeds to cover financial losses that may occur at the death of a key person
• Offer the funds to pay off or pay down business debts
• Assure customers, creditors and other employees of the stability of the company
• Provide funds to recruit, hire and train a suitable replacement
Key Person Disability Insurance
In addition, to insuring against the loss of a key employee, you may want to consider insuring against the possibility of your key employee becoming disabled. The chances of a key employee becoming disabled are not as remote as you may think – one in four 20 year-olds will become disabled before they retire.* With key person disability insurance upon the disability of the key employee, the employer receives funds for the loss of the key employee from the business.
Advice Focused On You
Our Financial Advisors can help you figure out what type of insurance is right for you and your business. Call us at (800)392-3009 to schedule an appointment.