Key Person Insurance

Could your business survive if you or a key employee died or were disabled, or would you be forced to sell your business or take other measures to meet financial obligations? 

Key Person Insurance provides funds to help hire a replacement for a disabled or deceased employee who is key to your business. Even in the face of such loss, your business will be allowed to survive.

Do You Need Key Person Insurance?

The need to identify these key employees is essential:

• They are normally involved in sales, or for other reasons have established valuable relations with important customers.

• Have unique technical knowledge or skills that are difficult to replace or would have to be replaced at a much higher cost.

• Have unidentifiable skills that create a positive disposition by lenders to provide credit.

The inability to recognize key employees could create the following losses for your company:

• Cost of searching, attracting and replacing your key employee

• The cost of temporary support until the position is filled by a qualified person.

• The loss in productivity or revenue until the position is fulfilled.

• Business loans may be called and lines of credit may be reduced or retracted.

• Suppliers may feel the need to move to cash on delivery.

• Increase in the cost to maintain debt.