What is Key Person Life Insurance?
Small businesses are often affected dramatically after losing a key person who is important to their business. Life insurance provides options which make this transition easier for business owners.
Key Person Life Insurance
In small and medium sized businesses, a key person may be the business owner, a top sales person, or the person who handles finance or accounting. What would happen to your business if one of these people were to die suddenly?
Usually there is a period of transition which may be difficult without your key employee. If the owner should happen to be the person who passed away, the company very well may go out of business. Losing the top sales person could mean losing your best accounts, or struggling to make ends meet.
Life Insurance for a Key Person Protects the Key People in Your Business. The key person in your business is someone who is of critical importance to the health and future success of your business. The key person is someone who cannot easily be replaced, and whose knowledge and performance is the key to your company’s survival.
The death of a key person may impact your organization for years. It really only takes a couple of steps to make sure your company will always be ready if this happens.
Life Insurance For A Key Person In Your Company
There are many advantages to considering a special key person term life insurance policy.
Key person term life insurance helps your business create a continuation plan should they ever lose a top employee. It provides the financial support needed to find a replacement employee, and to give the replacement all the training needed.
Key person term life insurance can also be used to pay off existing debt. If you want to make things run smoothly in your business, even if someone important to your business passes away, key person term life insurance is absolutely the best option for you to consider.
Is Buying Key Person Life Insurance Important for You and Your Company?
In businesses where the death of an owner would lead to the death of the company, this type of life insurance could save the business. The need for key person term life insurance really depends on your business and situation.
If your business relies heavily upon you, or certain key workers within your company, you really do need to figure out what it is that needs to be protected, and how you can start protecting your business and its future without a key person.
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