Key Person Life Insurance

Protect Against The Unexpected

The untimely death of a key person ? such as an owner, partner or majority
shareholder ? often has a significant impact on a closely held business.
Replacing the expertise and knowledge of an essential individual can take
time and money ? and may even jeopardize the continuity of the business.
You’ll also need to assure creditors and customers that everything is fine.
A key person life insurance policy can help the transition.

-Help heirs meet estate tax obligations without compromising or dissolving a
family business
-Keep the business running and assure creditors and customers that the
company will operate as usual
-Reduce the impact of the untimely death of a key individual by covering
expenses of finding and training a suitable replacement

Features:

Protect the value of essential employees

Don’t let the unexpected devastate your business. Key Person Insurance can
protect your company’s solvency in the event of losing an essential employee
or founder. It pays the company a benefit that can be used to keep the
company running. This assures creditors that they will be paid on time while
comforting customers that your business will continue to operate as usual.
It can also be used to cover expenses related to finding and training a
replacement.

How Key Person Insurance works

With Key Person Insurance, the business buys a life insurance policy on the
life of the key executive, and is the owner and the beneficiary of the
policy. The business pays the entire premium and will receive the entire
death benefit. The executive does not have any interest in the policy, nor
does his family receive any benefit from it when death occurs.