Business Succession Planning with Key Person Insurance

Your key employees add more value to your business than the cost of their salary. Their performance, professionalism, and character make your company what it is, and provide the stability and predictability you need to grow and succeed.

Key Person Insurance provides life insurance to cover the myriad costs to your business if a key employee were to die. The costs to your company when a key contributor is suddenly lost can go well beyond their salary. The financial impact can include business disruption, lost sales, downtime due to a grieving process, and even the drawn-out expense of trying to replace someone who seemed irreplaceable.

You and your managers decide which employees are critical for business success. Which key individuals are absolutely necessary to keep your operation sound, your customers happy or your inventions sprouting?

The way it works is your business entity purchases life insurance covering each key employee and names the business as the policy’s owner and beneficiary. Your business pays the policy premiums and in the event of a key employee’s death, the business receives the proceeds from the policy.