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 who have superior company, product, or industry knowledge that you heavily rely on for success. If your business lost this employee due to death or incapacity, it would require significant time and funding to recover.
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. These policies may be tax deductible and can be offered in the form of a salary increase, which saves income taxes. Your business will benefit from these policies’ positive effects on employee recruitment and retention.