Did you ever ask yourself what you would do if one of your most valuable employees would die unexpectedly? Especially for small businesses, this could be a devastating experience. Aside from the mental anguish that may come with a situation like this, losing just one employee could throw your whole business apart. The good news is that key life insurance has your back.
What Key Person Life Insurance Is
A key person life insurance policy is just what the name implies: it insures the key employees in your business. These may be employees that possess certain skills, certifications, experience or assets, or you may choose to purchase insurance for the managers or leaders in your company. You as the business owner are the beneficiary of the policy, and if you always pay your premium, you receive the insurance proceeds if one of these employees dies.
What Key Person Life Insurance Is Good For
If one or more of your key employees were to pass away, chances are your company would incur a large financial loss. Having key life insurance ensures that you’re covered and that you have enough time to find a replacement for said employee. It may very well save your business from bankruptcy. In a nutshell: A key person life insurance policy provides you with peace of mind.
For small, medium and large business alike, key life insurance is an important insurance product to have. A proverbial cracked foundation could cause your business to collapse, but with life insurance, you’re able to look ahead with optimism.