Key Employee Life Insurance
Did you know that most Americans aren’t insured at all, or are extremely underinsured? It’s a sad fact. I know that most everyone is uncomfortable with the whole talk about life insurance, but it’s my job to make sure you step out of that comfort zone and think about all possibilities. The fear is the unknown makes you, well, fearful, but it must be addressed sooner than later in order to run a proper business.
Key Employees are identified as valuable or “priceless” employees of the business. They are typically owners or employees who, without them, the business would suffer. These employees are your bread and butter, and should be protected with life insurance.
Life insurance for key employees is a policy that would pay you as a business owner in the event of the employee’s death, so that a qualified replacement could be obtained. Often times these employees are expensive to hire and maintain, so naturally a qualified replacement may be costly, hence the need for insurance. Things to also keep in mind is the amount of money a business can lose without a key employee, over time. What if your employee dies and it takes you 6 months to find a decent replacement? How much money could the business lose during that time? The life insurance policy proceeds could help replace some of that loss.
For more information about obtaining a Key Employee Life Insurance policy, contact us today.
Also, e sure to read our article “Start-ups: 5 Quick Ways to Close your Business Doors.”