Keyman Life Insurance has many uses including protecting the business,
rewarding key executive benefits, and providing estate planning alternatives for business owners.
- Key (Keyman) Employee Insurance?
- Executive Benefits – Rewarding Key Employees
- Key Man Life Insurance for Business Owners
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.
Smart companies realize the significance of providing competitive compensation packages to their executives and key employees. In fact, studies show that the chief reason why executives leave companies is compensation. A non qualified deferred compensation plan is a strategy companies use to provide additional supplemental benefits to their key people.
Life insurance has long been a valuable tool that business owners use to reduce risk and to provide the basic financial foundation for continued success. Most business owners recognize the importance of life insurance and use it to solve many of the problems associated with maintaining and growing a successful company. Some common uses of business owner life insurance include: key man insurance, security for loans, buy-sell agreement funding, asset accumulation and estate planning.