The Gap in Protection You Can’t Afford to Miss
Behind any successful business is a strong team of highly invested, committed people, without whom the business wouldn’t succeed in the same way. Are you picturing any of your own team members?
Now imagine something happened to one of those key people in your organization. What would be the true cost of replacing that person’s expertise, knowledge, and level of insight? Though you can’t prevent unfortunate things from happening, you can help protect your business.
Key person insurance is a simple, efficient way to provide your business with the funds necessary to handle the loss of a key employee and help recruit and train a replacement.
In a nutshell, it’s a life insurance policy on the key employee, paid for by the business. As the policy’s owner and beneficiary, the business receives the proceeds (generally income tax-free) upon the death of the key employee. Other benefits may include:
- Any policy cash values represent an asset on the business balance sheet.
- Access to policy cash values during the life of the policy, can be used for any business need, including informally financing key employee benefit programs.
- Cost-effective and timely liquidity after the loss of a covered key employee.
- A variety of product choices to include affordable term or permanent policies.
Key person insurance is simple to implement and maintain, and it offers other potential benefits as well. For example, policies could be used to fund a retention bonus plan as part of efforts to retain the most valuable members of your team.
Ready to take the next step and secure key person coverage? Take care to consider which type of insurance and funding method is right for your business. Talk to your financial professional to help secure protection for your business today.
All guarantees and benefits of life insurance policies are backed by the claims-paying ability of the issuing insurance company. Policy guarantees and benefits are not backed by the broker/dealer and/or insurance agency selling the policy, nor by any of their affiliates, and none of them makes any representations or guarantees regarding the claims-paying ability of the issuing insurance company.