Key man insurance is simply life insurance on the key person in a business. This is typically the owner, the founders or perhaps seemingly irreplaceable employees. These are the people who are vital to the business, the ones whose absence would affect the business drastically in the event that they are no longer able to fulfill their duties. You must to have key man insurance on those individuals.
This is how key man insurance works; the company gets life insurance on the key employee, pays the premium payments and is also the beneficiary of the policy. Upon an unexpected death of the insured, the company receives the insurance benefit amount. This is vital because the company losses a “key employee” and it protected financially.
This insurance should not be confused with individual life insurance, which is purchased to protect income for family and loved ones. Typically, a regular term life policy would be suitable for that.
Find out which policy is needed for you and whether or not you qualify for such coverage. Our licensed agents are available to help you make these important decisions.