Key Person Life Insurance
As a business owner, you recognize the contributions your employees make to your organization. A key person brings significant value to your business, and it is that value that you need to insure in order to help protect your business.
Key person life insurance helps reimburse a business for the economic loss that occurs when a key person dies. With key person insurance, business owners can offset the business risk of the death of employees who are essential to the success of the business.
Benefits of Key Person Life Insurance
- Employer is owner and premium payor
- At death of key person, employer receives policy benefits income tax-free if certain requirements are met*
- Provides funds to recruit, hire and train a replacement
Business can suffer from a key person’s death in significant ways
- Loss of management experience and skills
- Disruption in sales and production
- Increased expenses due to hiring and training a replacement