Key Person Insurance: Cover the Loss of an Essential Employee
Article Body and video link:
In our advanced market video series, we’ll discuss executive benefits and explain how they can help you and/or your company.
In this video, we’ll discuss key person insurance.
You can also read the article version below:
Key person insurance is a type of company-owned life insurance where a business or employer purchases a policy on an employee who is key to the success of the company or organization. This could be an executive or an employee with unmatched skills or who is vital to bringing in sales. With this life insurance policy, the employer is the policy owner, pays the premium and is the beneficiary.
Losing someone who’s extremely important to the company’s performance—whether from death, disability, termination or retirement— brings hardships and risk. The company will need to pay to replace the employee, train someone in their place, and may face a great loss in revenue. Key person insurance is designed to protect the company from this.
The policy would let the company utilize death benefits and cash values to offset the cost of the employee loss.
We can help you with all of your key person life insurance needs… and other tools to better secure your business. Watch our other videos to learn more and visit financialsquare.us to schedule a time to speak with us about helping you or your company. We look forward to it.
VP Executive Benefits
4 年Thanks for promoting, advocating, and posting. Owners need to protect the equity that they've created, and this is a risk that is often overlooked.
WHAT WE DO MATTERS!!!
4 年Top talent are the key to bottom line revenue. Protecting the company from their loss is important. Key person strategies can also be used to retain those key employees. Excellent and important topic!