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As a business owner, you may rely on a number of key people for the successful operation of your company. Many businesses have been built around the strengths and skills of a few individuals whose capital, energy, knowledge, or experience make them a valuable asset of the organization.
In the event of death or extended illness of such a key person, your business could suffer from the loss of knowledge, expertise and management capability. Replacing such a valuable resource is often difficult and costly in terms of finding and training someone new, as well as meeting their income requirements.
Key person insurance is a life insurance policy maintained by the company on the life of an important partner or employee. It provides funds to partially offset the economic cost to the company of losing such an employee. It may also provide:
- A stabilizing factor to keep the business running.
- Reassurance to creditors to keep credit channels open.
- A death benefit to the family of the deceased for a reasonable period of time to replace lost income.
Protect your Business in the Event of Death or Extended Illness of a Valuable Owner or Employee
Copyright (C) 2006, Ledgers Financial Services Inc.
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