What would happen if a key employee, say your general manager of a restaurant, or the estimator of a roofing company were to pass away? You would lose business, customers, and the business would suffer a key financial loss.
This is why your business needs to know about key person insurance
Key person insurance is life insurance on the key person in a business, without whom the business would struggle. In our examples above the business would take out life insurance on the life of the employee be it the General Manager of the restaurant or the estimator of the roofing company.
The business is the owner and beneficiary of the life insurance policy and is paid if the employee dies. Key person insurance can be funded by either term or whole life insurance and should be discussed with a licensed insurance agent regarding your specific situation.
This information is provided as general information only. Lucas Cole and the Lucas Cole Insurance Agency makes no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to this article or the information, products, services or related graphics, if any, contained in this article for any purpose. The information is not meant as professional or expert advice, and any reliance you place on such information is therefore strictly at your own risk.