KEY PERSON INSURANCE
Planning ahead can safeguard your business from unexpected challenges. Key person insurance provides vital protection, ensuring your business remains resilient if you, a key employee, or a business partner are suddenly unable to work.
The right insurance coverage can help you:
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Protect your business, if you, or a key employee is suddenly unable to work
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Secure or pay off a business loan (known as collateral assignment)
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Provide you or your business partner with money to help buy the other person’s share of the business, if 1 of you is leaving. While there are different ways to arrange funding, life insurance is often the most cost-effective, simplest, and most secure method.
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Cover expenses for you or your family if 1 of you is leaving
How key person insurance can protect a business
KEY PERSON LIFE INSURANCE
Let’s say you purchase a key person life insurance policy for your important sales manager. If they died, the life insurance proceeds would help you meet financial objectives in their absence and pay for hiring and training a replacement.
KEY PERSON DISABILITY INSURANCE
Key person disability insurance can benefit your business 2 ways. If your sales manager becomes disabled, it can help you to continue providing them with a salary until age 65 or they recover, whichever comes first. It can also help you continue paying office expenses and salaries during the time of the disability.
KEY PERSON CRITICAL ILLNESS INSURANCE
With key person critical illness insurance, if your sales manager has an illness covered by the policy, it will pay a lump sum to your business to help cover financial losses or lower productivity from that person being away from work.
