Key Person Life Insurance

Protect your business from the adverse effects of losing important personnel – specifically employees with a particular expertise or who have earned credibility with customers, vendors or creditors. Typically, founders and chief executives who are critical to the firm’s success and relationships are covered with a key person life insurance plan. At death, the life insurance policy provides funds to help recruit and train new staff, replace lost profits and strengthen the company’s balance sheet to help assure creditors and suppliers about continuity in the firm.

• Immediate receipt of the policy’s tax-free death benefits in order to apply to business costs.
• Ability to use the funds to purchase the decedent’s ownership interest, replace lost revenue and train a replacement.
• Offers the flexibility of an exchange agreement, allowing transfer of coverage to a successor if the key person leaves the firm prior to retirement
• May result in additional benefits such as a higher credit rating for the firm and the ability to tap the policy’s cash value for emergency funds.

 

This material contains only general descriptions and is not a solicitation to sell any insurance product or security, nor is it intended as any financial or tax advice. Guarantees are based on the claims paying ability of the issuing company.