Key Man Protection Keeps Your Company In Business
Look around at the important members of your team and try to imagine your business operating without them. Your best sales professional has established strong ties with your top customers and if something were to happen to that sales professional, then those customers may fade away.
Now try to imagine your business operating without you for a few months because of an accident or an illness. What would happen to your business if you were to suddenly pass away? Have you always wanted to leave your business to your children to run? Without key man protection, the future of your business is much more unstable than you ever could have imagined.
What is Key Man Protection?
We do not have a specific policy that we refer to as a Key Man insurance policy. Key Man protection is a concept that we use to help protect your business in case your or a key member of your staff were to pass away unexpectedly, or experience a long-term injury or illness. It is business planning that insures that your business will be there when you recover and your business will be there for your beneficiaries, when the time comes.
What Insurance is Used?
The beauty of Key Man protection is that we can use any kind of insurance coverage we need to get the job done. The primary types of insurance involved in Key Man protection are:
- Life Insurance
- Health Insurance
- Disability Insurance
- Income Protection Insurance
We will sit down with you and put together a plan that will protect your succession wishes and keep your business going if a key employee should pass away or become incapacitated. It is the kind of insurance that proactive business professionals use to secure their organizations’ futures.
When Does Key Man Protection Kick In?
Each Key Man insurance policy is utilized at the appropriate time. If you or a key employee pass away unexpectedly, then the life insurance would be utilized. If you or a key employee become incapacitated in some way, then the health, disability and income protection insurance would be initiated.
The company holds the policies and all proceeds are paid directly to the company. The proceeds of Key Man insurance policies are used to:
- Buy out company shares (in the case of a sudden death)
- Provide income that would be lost due to lost business
- Help hire temporary replacements to keep the business going
- Pay legal fees associated with any procedures that may have to be undertaken
Key Man protection does not protect against employees being terminated or leaving the company voluntarily. It also cannot be cashed out by a departing owner as part of any financial compensation. It is simply financial protection that helps the company to adjust to a difficult period.
Get Key Man Insurance Now
Our business consulting professionals are experts at putting together effective Key Man protection programs. The longer you wait to get Key Man protection put in place, the longer your company could be exposed to complete collapse the first time an unfortunate incident occurs.
Give us a call and we will gladly explain Key Man protection to you. We will match up your company needs with our wide array of protection products and make sure that your company is protected no matter what may happen.