Retire Comfortably
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Key Person Insurance provides a death benefit to the policy owner in the event of the death of an essential employee.
Who needs it?
If people are your business's greatest asset, you may need
Key Person Insurance.
Who is a Key Person?
Someone who's contribution to your business is significant and who's death would place a financial burden on the business.
Executives
Top sales people
Highly visible employees
Financiers
Highly skilled or talented employees
What happens when a key person dies?
Your business may need to...
Hire and train a new employee
Rebuild company morale
Pay money to the deceased's family
Repair credit hurt by the loss
Replace lost earnings
How much is a key person worth?
Valuation Methods:
Multiple of salary
Contribution to earnings
Present value of projected loss in earnings
Replacement Cost
One year's profit
How does it work?
3 Easy Steps
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Determine value of employee
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Get employees consent and apply for insurance
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Pay Premium- Business is payer, owner, and beneficiary
If key person dies, benefits are paid to the business income tax free
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Replacement Cost
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One year's profit