Protect the business with Key Person life insurance
A business’s success is often built on the experience, knowledge, skills, and special abilities of its top people. But what happens if one of those key employees passes away? Your clients can protect their business with Key Person life insurance.
How does this strategy work?
If your clients depend on one or more key people, it may be necessary for them to have a cash reserve set aside to protect against the loss of their company’s top talent. That’s cash that could be needed to recruit and train a new hire, or to make up for missed opportunities and lost profits. Instead of pulling cash out of the business at a critical time or straining its credit, your clients can set up a contingency by purchasing a life insurance policy on the lives of their key people. That way, if any of their key people pass away, the life insurance proceeds will be readily available.
A business with:
- Strong entrepreneurial owners
- Key sales personnel or managers
- Professionals with special skills
- Specialty products or services