KEY PERSON LIFE INSURANCE

Every company relies on valuable employees and stakeholders who are crucial to driving growth, success, and longevity. These key individuals bring unique skills, expertise, and leadership that make a significant impact on the organization’s prosperity and future. 

Therefore, business insurance that provides financial support to your organization if an owner, CEO, or a vital team member is suddenly unable to fulfill their role is essential.

Key person insurance addresses that need by providing your organization with a financial solution designed to remove the economic burden of an essential loss. Depending on your coverage, your company can use the benefits to cover expenses such as:

• Mitigating financial losses after losing a key revenue earner or account holder 
• Covering recruitment and training costs for hiring a suitable replacement
• Addressing loan obligations held by a lost team member 
• And maintaining investor and creditor confidence

At JD Fulwiler, we aim to offer support when our partners need it most. Let us assist you by finding the best key person life insurance solution for your needs.

Contact us today and learn the difference having the right insurance provider can make to your business.

WHAT IS KEY PERSON INSURANCE INSURANCE?

Consider a key person plan similar to a life insurance policy. In this case, your organization insures your most valuable employees to mitigate losses when the unthinkable happens.

We start by working with stakeholders to choose one or more employees you wish to cover. We then curate coverage based on individual needs, pricing, and other specific requirements.

Once the insurance policy is active, your company pays the premiums, and your organization becomes the beneficiary and owner. In the unfortunate event you need to use the policy, the insurance company will pay your business based on your plan’s underwriting—often tax-free.

WHO SHOULD I PURCHASE KEY PERSON INSURANCE FOR?

It depends on your specific needs. We meet with your team to thoroughly understand the roles and responsibilities within your organization. From there, we identify the key individuals whose absence would impact your company’s operations, revenue streams, or growth the most. 

Typical candidates for key person insurance we recommend include:

• C-suite executives (CEO, CFO, COO, etc.)
• Top salespeople and account holders
• Partners or owners
• Employees with specialized expertise or skills
• Potential successors for leadership roles
• Those with technical knowledge or unique skills
• And any other individuals we understand to warrant coverage

Schedule a personalized consultation with one of our insurance experts to explore key person insurance options. After receiving your inquiry, we will work with you to create a tailored solution that ensures peace of mind and lets you concentrate on growing your business.

HOW DOES MY COMPANY GET REIMBURSED?

We can structure your key person coverage as either an affordable term life policy or a permanent life insurance solution. A permanent policy treats the cash value as an asset on your books. You can also use the cash value if your business experiences a rough patch or has other financial needs.

HOW CAN KEY PERSON INSURANCE HELP MY BUSINESS?

Key person insurance provides a critical financial safeguard for businesses by providing the following advantages:

• A monetary payout to cover costs of recruiting, hiring, and training replacements for vital employees
• A cash influx to maintain operations and revenue streams during transitional periods
• Assurance for investors, creditors, and partners about the company’s future stability
• Protection for the business’s legacy and all the hard work invested in its success

Replacing staff members with critical skills, expertise, or relationships is often time-consuming, difficult, and costly. Key person insurance can offer essential funds and liquidity to support the business during the loss of a key employee.

HOW IS KEY PERSON INSURANCE DIFFERENT FROM EXECUTIVE LIABILITY COVERAGE?

Think of key person insurance as a business policy to cover qualified expenses should a core employee pass away or can’t work due to a disability. In this case, the benefits help your organization cover costs like recruiting, hiring, and training their replacement.

We also curate executive liability insurance to provide financial compensation if legal action or a disagreement associated with your organization’s highest-ranking employees requires payment. 

Businesses in various industries have unique requirements, making it essential to consult with an insurance expert to secure the appropriate coverage. Connect us today to arrange a meeting with an insurance specialist at your convenience.