What is Key Person Insurance?

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Replacing a key person takes time and money − and could cost the business valuable clients during the transition. Key person life insurance offers a death benefit that can help cover financial losses that occur at the death of a key person. This helps assure continuity of the business for employees, customers and creditors.

 

Taking out a key person policy on your top employees also affirms their value to your business, strengthening the relationship.

 

What are the benefits for your business?

 

• Tax-free policy proceeds cover financial losses that may occur at the death of a key person

• Assurance of business continuity for your executives, customers and creditors

• Coverage is a business asset that enhances your business' credit worthiness for commercial borrowing

• Key person's value to your business is affirmed, strengthening the existing relationship and aiding in retention

• Policy's cash value may be available to your business through a withdrawal or loan if needed for funding business opportunities or retirement benefits