One of the most often used application of insurance is to provide various benefits to the key person of the business A key person insurance pan can be easily set up to provide a death-benefit-only plan or a nonqualified deferred compensation plan. A key person insurance plan can also provide a benefit to the business by ensuring the value of the key person or persons, as a human asset. The business must protect against the negative economic impact that the loss of such a person can have on the continued operations, customer relationship, and creditworthiness of the business.

 

Generally, a key person is an employee whose death before retirement would have an adverse economic effect on the business. Such an adverse effect can be a loss of profits, the loss of credit standing, or the extra expense of hiring a capable replacement.

 

Contact us today to discuss how a Key Person Insurance plan can give your business peace of mind.