What is "Key Person Insurance"? Basically it is a life insurance policy for your business that covers a top level executive, owner or other individual that is deemed vital to the survival of the business. The company is the beneficiary of the policy and is given a financial cushion at the time of a sudden loss to the "Key Person".
That money, from the benefit, can be used to cover the costs of recruiting, hiring, and training a replacement for the deceased person. If the company doesn't believe it can continue operations, it can use the money to pay off debts, distribute money to investors, provide severance benefits to employees, and close the business down in an orderly manner. Key person insurance gives the company some options other than immediate bankruptcy.
To determine whether a business needs this kind of coverage, company leaders must consider who is irreplaceable in the short term. In many small businesses, it's the owner who does most things, such as keeping the books, managing employees, handling key customers, etc. Without this person, the business can come to a stop.
So if you think that Key Person Insurance is something that your company or business would benefit from, please contact us at sam.heavrin.ins@gmail.com to see how best we can help protect the future of your business and company.