Protect Your Business with Key Person Insurance

Keyperson insurance is a critical component of any organization because it can help the company survive the blow of losing an integral member of your business.

Replacing a key person takes time, money and could cost your business valuable clients during the transition. Key person life insurance offers a death benefit that can help cover financial losses that occur at the death of a key person. This helps assure continuity of the business for employees, customers and creditors.

Taking out a key person policy on your top employees also affirms their value to your business, strengthening the relationship.

Other features of key person insurance

  • The death benefit can be used to recruit and develop a replacement for the previous key employee
  • Coverage is a business asset that enhances your company’s creditworthiness for commercial borrowing
  • The policy’s cash value may be available to your business through a withdrawal or loan if needed
  • The business pays the premiums, and they are non-deductible

How much life insurance is needed on a key employee?

This is a difficult question and budget will, no doubt, be a factor. Most life insurance companies will approve up to 5-10 times the key employees’ annual salary including bonuses. Age will be factored in as well on the multiple of income allowed. The insurance carrier will want to know the nature of the business, when the company was started, net worth of the company, if the key person is an owner of the business and if all key people will be insured. Insurance carriers will want to see that all key people, or owners of the company will be insured. It’s a red flag to them if any key persons or owners aren’t being insured, unless they are uninsurable.

services overview

Human Resources

Your employees are your most valuable asset. Like all valuable assets, they must be properly managed to utilize their full value. You know that maintaining all aspects of this important asset, and liability, is vital to the long-term success of every business. Let us provide you with the tools you need to handle both these areas of Human Resource Management. We’ll help you manage both the assets and liabilities.

Customized Business Solutions

You deserve a true expert to manage the options, rising costs, and compliance requirements of your insurance needs. As a leading advisor of broad-based solutions, you gain from our experience in designing plans that support your company's sustained success.

Risk Management

Employment Practices Risk Management helps protect your business from many employer liabilities such as discrimination, wrongful termination, unlawful retaliation, and harassment claims. Our comprehensive program not only provides resources that help prevent issues from happening in the first place, but also supports you in the event of a claim with insurance coverage and claims management expertise.

Employee Benefits

In order to attract and retain innovative, dedicated workers, an employee benefits program is a necessity. Managing your employee benefits is an important part of any payroll and Human Resource function. Just as important, successfully managing and controlling the ever-increasing costs of employee benefits can provide a competitive edge for your company. Creating and running a truly effective employee benefits program, though, is a task few companies are equipped to handle themselves. Let us help!