Safeguard your Business with Key Person Insurance
As an employer, you know that running a great business means having a team of great people, but there may be one person who stands out as being a key player in the company’s success. This person’s knowledge, work, or overall contribution is considered uniquely valuable to the company. How would your business cope if that person were to pass away, or become seriously ill? Key Person Insurance helps to protect your business, should such unfortunate events occur.
What is Key Person Insurance?
This is a business-specific life insurance that can compensate a company for the financial loss and other consequences of the death of an important member of the business.
How does it work?
You can take out Key Person Insurance at any stage of your company’s lifetime. You will pay a premium on a regular basis, based on the cover that is required. If the unexpected happens and this person dies, or becomes seriously ill, the policy will provide a lump sum to compensate for this event. This can be used to offset any financial losses incurred. It can also be used to contribute to bank loans where the key employee gave a personal guarantee, or to pay off loans made to the company by the key employees.