Do Any of You Have Key-Person Insurance?

Most companies have at least one employee who is key to the success of the business. Whether it’s the owner, a partner, a majority stockholder, or someone with a high level of expertise, the loss or death of that person could mean financial ruin for the company.

The objective of key person insurance is to financially protect the company from adverse impacts if one of those key employees suddenly dies or becomes disabled. The finances available from a key person insurance policy would:

• provide funds to find, recruit and train a replacement
• help replace any profits the company may have earned had the employee not died
• strengthen the company’s working capital and balance sheet to help assure creditors and suppliers about the continuity of the business.