Closing The Gaps: Key Person Insurance
BY PEKIN INSURANCE · AUG 31, 2022 ·1 MIN READ
Do you have an employee that your business simply would not thrive without?
As business owners, we all have people in our company that we depend on in a unique way. These people are vital to the success of the company. The passing of a manager, owner, or other key people in your company is tragic. Your business should have protections in place to ensure that you can continue your operations, have the time you need to grieve, come up with a game plan, and find a quality replacement if the unimaginable happens. Key Person Life Insurance can help you do just that.
The “Key People” in your company are also the employees contributing to your business’s success and want to see the business continue to flourish, even under the worst of circumstances. With Key Person Life Insurance you’ll have the funds to help stabilize the business. You’ll be able to continue production, sales, and providing for the other stakeholders in your company.
Finding A Replacement
You have big shoes to fill when trying to replace a Key Person in your company and finding a quality candidate requires a lot of time, money, and patience. Key Person Life Insurance gives you the ability to take your time coming up with the best course of action, the funds you need to do it, and hopefully, the peace of mind to be patient in the process.
Now, I know what you’re thinking. What if I pay for this policy and never have to use it? Well first of all, Key Person Life Insurance is affordable, but did you know it can also be a benefit to your employees? Some policies build cash value over time that can be distributed to key employees in a retirement plan. These kinds of policies may also let you reward your key person so they might not consider leaving for another job. Having great benefits can create a lot of loyalty amongst your employees. Key Person Life Insurance is one of the many ways you can do that.
The Big Picture
When we think about business insurance, we think about protecting our income and assets. We insure our property, the vehicles we use for work, loss of business income, and the list goes on! Why would we not insure the people who keep our business moving every single day?