What is Key Man Life Insurance?
In today’s business world, many employees are viewed as easily replaceable. But, let’s face it, not everyone is. There are members of your team that have superior company, product, or industry knowledge that you heavily rely on for success. If your business lost this employee due to death or another form of incapacitation, it would require significant time and funding to recover. We suggest you take out an executive life or disability insurance plan to ensure your business can survive this type of loss.
Key person life insurance, also known as key man life insurance, or business continuation coverage, offers a lump sum payment upon the death of a key employee, partner, or principal of a company. The primary purpose of the policy is to assist with the transition period and provide supplemental resources. These policies may be tax deductible and can be offered in the form of a salary increase which saves income tax. Your business will benefit from these policies’ positive effects on employee recruitment and retention. The executive insurance plans we offer address the following: new hire recruitment and training; shareholder and partnership protection; loan obligations; profit loss; and other costs that help fill the void.