Do you have a Key Employee that has special knowledge and skills that generates income for your business?

Even though key employees are a source of a business’s success, owners very often do not have insurance on them. Or if they do, the amounts may be less than the insurance on computers or other equipment that only brings in money when used by one of these key employees. Therefore, we believe that key employee insurance is one of the most underused business planning concepts. It’s also one of the most straightforward concepts. 

The business owns the life insurance policy and is the beneficiary on the policy insuring the key employee. In the event of the key employee’s death, the insurance funds can be used to protect the business against loss of sales, and can also be used to recruit, hire, and train a replacement employee. 

If the key employee lives and retires from the company, the owner still has options. The owner can keep the policy in place, surrender the policy and use the cash value for business purposes, can transfer the policy to the employee, or surrender the policy and pay some or all the cash value as a retirement bonus to the employee. 

Protection, along with options for the future, makes this underused concept a versatile business strategy. 

Our specialist can help design a customized plan for your business.