If a key team member were to die suddenly or become sick or wounded, how would this affect your firm? Would you lose management skills? Would there be a loss of sales or production? How expensive would it be to hire and train a replacement for that key person?
To protect against the financial loss in the event of a death or disability of a key person, many firms will purchase key person life insurance and key person disability insurance to reimburse the company for that shortfall. The business owns the policy, pays the premiums, and is the beneficiary of the policy.
Key Person Insurance
Learn about key person insurance
Learn how key person insurance works