Key Man Insurance
Often referred to as “Key Man Insurance,” Key Person Life and Disability Heath Insurance is life insurance on the key person in a business. (Of course, despite the “man” distinction, that person could just as easily be a woman.)
In a small business, this is usually the owner, the founders or perhaps a key employee or two. These are the rock stars. We’re talking about Tom Brady and Rob Gronkowski. Think of the employees who are crucial to your business, the ones whose absence would sink the company. You need Key Person Insurance on these people. And we know exactly how to help you determine who those people are and how you should protect them and your business.
If you’re at the beginning of launching your business, you have a lot to worry about. You spend all of your time working on the day-to-day details, getting your product or service ready, hiring the right employees, mastering the art of high sales and low overhead, paying the bills on time and securing all the proper permits. It’s nearly impossible to find the time to consider something that doesn’t seem urgent but that can cut your success in half if unattended – Key Man Insurance.
It works like this: We help you purchase a life insurance policy on your key employee(s). If that person dies unexpectedly, your business receives the insurance payoff we helped you secure after our brief consultation.
This might seem like a concern for only large companies. But it’s quite the opposite. The death of a key person in a small company – which is unthinkable, yet must be considered – could result in the death of the company. Key Person Insurance helps your company survive the blow of losing the person who makes the business work.
The policy’s proceeds can be used to pay expenses until you can find a replacement person or, if necessary, pay off debts, distribute money to investors, and more. We hope it doesn’t come to that, but our Key Man Insurance coverage will give you some options other than immediate bankruptcy.
What if you’re the key person and the boss? If your company is just you and doesn’t have any employees or other people who depend on it, this type of insurance isn’t as necessary. That’s why you carry Personal Life Insurance.
However, if you’re concerned about your business and the safety of your key employee(s), we can help. Contact us today for an easy discussion about our reasonable Key Man Insurance policies.