Do you have that one key employee that your business would be devastated from their untimely loss? Maybe you are the business owner and the key employee? If you would like more information about key man life insurance or to get some advice on if key man life insurance is appropriate, please click the “Request a Quote” link or call me at 281-451-0194.
What is key man life insurance?
Business owners ask that frequently and that’s a great question, because it’s an important one. You have a business, its rolling right along, everything is going great. It’s booming, growing, everything, and you have that one employee that’s there that everybody asks for. Maybe they do the job a little bit better than most everybody. Maybe they have a skill set that nobody else can really duplicate. Bottom line, they’re integral to the success of your business.
Your business is doing well largely because of their contribution. And you probably take great care of them. You have their pay up there. You’ve got them on a commission program that fairly compensates them. The problem is, is what happens if they die in a car accident on the way home? Or they get cancer and something happens to them? If they pass away and they are that key employee that you’ve got, it could devastate the business, possibly even causing it to fail. Sometimes, key people are just key employees that you found. Oftentimes, the key man is the proprietor themselves or the person who founded the business in the first place.
So, what a key man life insurance policy does, it’s a life insurance policy that the company takes out on that key employee, in case they pass away, to provide liquidity, to provide money, to support profits lost, while you’re transitioning from that key person to find another. It may take you a year to find a replacement for that person, and what the life insurance does is put a number on that, that can be funded, so that, that transition can take place. If you like some more information on what a key man insurance policy would look like and how it might affect you personally, please click the green “Request A Quote” button or give me a call at 281-451-0194.