Free instant quote for Key Man Life Insurance
Key Man Insurance
Key man insurance is a sub-type of life insurance that is aimed at the business world, where one person's skills and abilities can make an enormous financial difference. If a large portion of your business hinges on a few key people, you should give some thought to key man insurance.
Who Needs It?
Key man insurance is meant to cover the company's losses in the event of the death of a key employee. That employee may be a particularly capable sales person, a manager, or the company owner, the underlying assumption is that the company will suffer greatly should that person pass away.
What Is It?
Key man insurance is generally a term life insurance policy, with the length term being the time until that employee retires. The company pays the premiums on the policy and receives the death benefits if the employee unexpectedly dies. If
the employee retires, the company may choose to also surrender the insurance contract, giving the employee the chance to convert the policy to a permanent one.
How Much to Cover for?
Losing a key employee can harm your business in multiple ways. Your key man insurance policy must provide enough coverage to account for all costs associated with such a loss. This loss is expressed not just in immediate loss of profits or revenue; the company must also bear the costs
of hiring temporary replacement staff, of conducting the search for a suitable replacement, and the new employee's training.
It is vital for your company's financial health that you select the best insurance policy for your specific case. The above description is meant as a brief outline only, and does not reflect the full complexity of selecting the best insurance policy. If you wish to receive additional
information, please follow this link for a key man insurance quote customized for your needs.
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