Archive for the ‘Insurance’ Category
Key person life insurance is a contract that offers financial protection or reimbursement from losses on an owner, partner or key employee; whom a business depends on for continued successful operation. With the typical personal life plan, a family member usually receives the benefit. In this type of plan, the company would be the one to acquire the benefits.
A key person can be anyone that is essential in the daily operations of a business. Their absence may result to devastating losses such as financial troubles, interruptions or failure. For large companies; an executive, principal shareholder, a particularly effective salesperson can be considered as a key person. On the other hand, the key person in small businesses is usually the owner, founder, partner or a key employee.