What would happen to your business if you, your business partner, or key employee were to unexpectedly die or become too sick or injured to work? There is no doubt that this would have a huge impact on your business and its continued success.  

Key person insurance can help ensure the financial stability of your business is protected in the event of a valued employee’s death. Under this type of plan, you purchase a life insurance policy to cover the life of that individual, naming your business as the beneficiary. If the key employee dies, the proceeds are paid to the business to help keep it going while you seek to fill the void left by the deceased employee. It can also be used to fund a nonqualified deferred compensation plan.  

This arrangement is ideally suited for businesses with:

● Owners, partners or executives that have a direct impact on company earnings.

● Salespeople who continually exceed goals or have relationships with important clients.

● Individuals who have specialized skills or technical knowledge that cannot easily be replaced.

It is prudent for business owners to also consider a Business Overhead Expense disability insurance policy that reimburses the business owner for existing overhead expenses incurred while disabled, keeping the company up and running while the owner recovers. This is particularly important for smaller professional service firms.