Keyman Life 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.The
type of policy will depend on the company's objectives.
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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.