Keyman – Key Person Insurance Defined
Keyman “AKA” Key Person Insurance Defined
Key employees are those people who are critical to the success and profitability of the business. These individuals may be business owners, partners or executives that have a direct impact on company earnings or whose skills, talents and expertise are crucial to the continued growth of the organization.
Some examples of key employees are as follows:
- Individuals with creative skills or technical knowledge that cannot easily be replaced. These key employees may be software developers, inventors, scientists or anyone with a niche talent that cannot easily be replaced.
- Top sales professionals that have extensive experience and continually exceed sales goals or have great relationships with vendors and high end customers.
- Executives that are responsible for managing the daily operations of the company or are responsible for a special project or development program.
- Someone whose death or disability would negatively impact the businesses credit or financial solvency.
- Business partners that need to be protected in the event of death or disability. At the death or disability of one of these business owners, the family members share in the company must be purchased.
Key employees are individuals that have such an influence on the ongoing success of a business that their premature death or disability could result in the eventual demise of the company.
If you have questions regarding your company’s need for key person insurance, call MEG Financial today at (877) 583-3955 or email us today. A licensed insurance professional will review your circumstances and determine if key person life or disability insurance is something you should be considering.
Helpful Information on Key Man Insurance