Much like the relationship between children and their father or mother, a business often revolves around the actions of its President or CEO – guiding their employees and helping to make important decisions about their future. However, if something were to happen to the father, or the CEO, what is the next step? This is where key man insurance comes in, making sure that the business continues to thrive despite the absence of its leader.
Under a key man insurance policy, the business pays the insurance premiums, and is therefore the beneficiary of said employee’s life insurance policy. The benefits are generally tied to the value placed on the employee and their financial impact on the company. Many companies use this money to replace, hire or train an individual to take their place.
If you’re interested in setting up a key man insurance policy, we can help determine what the best course of action is so that your company isn’t left out in the cold should they lose an invaluable employee.