- Recruit, hire and train a replacement for your key member.
- Pay off debt and deal with creditors.
- Alleviate lenders’ concerns about your company’s financial health.
- Reassure customers, employees and investors that the business will continue operating.
For more information about please fill the Request Form and one of our representatives will contact you.
A key person is an employee or a business partner/owner whose skills and intellectual capital are so valuable that your business would suffer substantial financial losses due to that person’s death or inability to work due to a disability. This person has knowledge, skills or talent that few others can duplicate. The industry he or she works in, or the nature of the work, may be so specialized (such as research or design) that there are few others with the skills needed.
Key person insurance can provide your business with the working capital it needs to keep operating and to fund the recruitment and training of a replacement should a key person pass away or become totally disabled. If the key person is the most significant contributor to your business, your company may not be able to continue operating without that person. In that case, key person insurance could compensate you (or your other business owners) for lost income should your business have to close down.
This depends on the type of life insurance plan you choose for the policy. You can choose from Term 10 to Term 20.
A key person is any valuable member of your company who, should they pass away or suffer from a critical illness, will result in financial losses for the company. The most common types of a key person are: Company directors, shareholders, CEO’s, chairman, partners. Also a sales manager or top salesperson could be a significant loss to a company. In a manufacturing environment the loss of someone with expert technical knowledge would impact negatively on an important project. The ability to hire an immediate replacement could mean the company carries on trading, or suffer damage to reputation and profit.
It is depends on how employer setup Key person Insurance policy. If the premium is tax deductible then befits are also taxable.