Key Person Insurance
What Is Key Person Insurance?
Imagine the key person of your business lost their life what would you do next? With the help of key person insurance, you can overcome your immediate cash needs and find a replacement for the key executive.
The Key-person insurance is a disability of life policy for the director, owner, or employee of a company who is vital for the business.
The possibility of a key person’s disability or death can be insured by choosing the best key person insurance plan. The time, experience, knowledge, and efforts put upon by the key people on the business is huge and the death of such an important person in a business can lead to various financial obstacles.
The insurance plan will help you to manage recruitment, payments, business survival, the company’s financial health and much more.
How long does a key person life insurance/ disability insurance provide coverage?
Key person life insurance:
Life insurance coverage will depend upon the insurance plan you will choose. Normally, term life insurance can provide coverage for 10 or 20 years while a permanent plan could provide protection for the lifetime of the insured person.
Key person disability insurance:
The key person disability insurance plan is till the specified age stated in the contract or it may also end after the maximum benefit period has been met for any one period of total disability.
Why is key person insurance is so important?
Key Person insurance policy for a business has become common these days. It has become common practice for businesses to protect the business from the death event of a key person. There might be a chance that business cash flow gets affected due to loss of confidence via vendors or suppliers.
We here at Risk Solutions are always available to help you out to overcome these crucial situations. We first understand your need and determine how much key person insurance is required for your business or your business may need.