Key Employee Insurance Quote Key employee life insurance is usually
purchased on one or more key people in a business to protect the
business
from the economic loss associated with an untimely death
of an important employee. The company buys the insurance to cover
the life of the key person and is also the policy beneficiary.
In the
event
that
the key employee dies, the business receives the lump sum
policy proceeds that can be used at the company’s discretion
to stabilize the company until a replacement employee can
be found.
Please provide all of the necessary information and click on send now and Key
Person Insurance will review your request.
Types of Key Employee Life Insurance
There are two basic types of life insurance used for key man life policies:
term life insurance and universal life or whole life insurance. The
type of policy used depends on the specific needs of the business. For
example, start-up firms that do not have steady cash flows would use
term life insurance because of its relatively low cost and flexibility.
On the other hand, more established companies with significant earnings
may select universal life or whole life insurance as these policies
build cash value which is an asset on the company’s balance sheet
and can be accessed anytime at the discretion of the
company.
Key
Employee Life Insurance Concerns
