Helping your business recover from loss
Key person insurance, also called key employee life insurance, provides your business with funds to help it continue to operate smoothly after the loss of an important contributor.1
The sudden loss of a key employee who is critical to your business’ success could have significant consequences. Lost sales, decreased earnings and lower profits are only a few potential outcomes when an important person is suddenly gone from your business.
In addition to being emotionally difficult for you and your employees, this loss can also create unforeseen costs for hiring and training a replacement.
How it works
Your business is the owner and only beneficiary of a life insurance policy covering a key employee. The key employee has no rights to the policy.
If the insured key person dies, your business receives the death benefit income tax free,1,2 which can be used to help your company recover.
If an employee insured with key employee life insurance leaves or retires, you may be able to transfer the cash value to a new policy insuring a replacement employee without any new expenses.3,4