Key - Person Insurance

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Key-Persons Insurance A policy purchased by, for the benefit of, a business insuring the life or lives of the most valuable personnel(s) integral or considered critical to the business operations. The company is the beneficiary of the policy and pays the premiums. This type of life insurance is also known as "key man (or "keywoman") insurance," "key person insurance," and "business life insurance." Key man insurance is simply life insurance on the key person in a business. In a small business, this is usually the owner, the founders or perhaps a key employee or two. These are the people who are crucial to a business the ones whose absence would sink the company. You need key man insurance on those people! The purpose of key person insurance is to help a small business maintain its financial footing after the death or disability of an owner or a core employee. Investors and lenders often require key person insurance on a business’s management team. If you decide to purchase key person insurance, you should work with an insurance agent to choose the right policy for your needs. The agent can help you to determine the amount of coverage you need, the type of policy you want, and the premium you will pay. Overall, key person insurance can be a valuable tool for businesses that rely on the skills and knowledge of a few key employees. However, it is important to carefully consider the costs and benefits of this type of insurance before purchasing a policy. #benewinsurance #insurtech #inclusiveinsurance #insurance #reinsurance #takaful

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