Key Person insurance, also known as key man insurance, is life insurance on a key employee, partner, or proprietor that the continuation of the business depends upon. The insurance policy is taken out by the business and covers the key person or persons. A key person for a business is someone keeps the business going and is impossible or difficult to replace. There are some very important reasons for key person insurance.
- Get Through the Tough Time
- Business Continuity and Survival
- Take Care of Your Employees
- Protect the People Involved
If a key person from your company dies suddenly, then it’s likely that the entire business will have a hard time getting through it. With key person insurance, the company can have the funds to find a replacement or pay off debts. It gives the company options instead of having to end in bankruptcy.
If a business is not able to run without a certain person, then it’s important to have the funds to be able to replace them. Business owners and employees can have the peace of mind knowing that if one of their partners or boss suddenly dies, the business will not.
Sometimes when a key person dies, the business dies with them, usually a small business. Without key person insurance, this can leave unfulfilled credit obligations and uncompensated layoffs. Key person insurance can allow the business to close down smoothly giving employees what they need until they find another job.
Key Person insurance protects a partnership, and investors and shareholders involved with the business. If you’re looking for investors, it makes your company look more attractive and stable as an investment option.
Keep your company, partners, and employees safe with key person insurance.
At LifePlan Financial, we pride ourselves on our quality work, our honesty to our clients, and the reliability we provide. Getting life insurance doesn’t have to be a hassle when you use LifePlan Financial. Contact us today for any questions or get an instant term life insurance quote to get started.