Key Person Insurance Plan
Key person insurance is a plan to idemnify a business for the death of a key person and the loss of that individual's skill and experience.
Why Do You Need It?
You have probably insured your business against the loss of buildings and equipment. But what about your firm's most valuable assets--your key executives and employees?
Their talents and experience account for much of the success of your business. If one such individual were to die unexpectedly, profits would suffer. And you would face the financial strain of recruiting, hiring and training a suitable replacement.
Key person insurance can help. More specifically, it can guarantee a flow of tax-free dollars you can use to:
- Help replace lost profits
- Provide the funds to recruit, hire, and train a suitable replacement
- Help assure customers, creditors and employees of business' continuity
- Pay a tax-deductible death benefit to the key person's family
How Does It Work?
Inadequate management caused 94.8% of business failures.
Debt averaged $394,744 per failure.
The death or disability of a key employee is a substantial risk!
Source: Dun & Bradstreet, Business Failure Record--1982, page 12.