WHAT IS A KEYMAN INSURANCE?
Key Person Insurance. Definition: Life insurance on a key employee, partner or proprietor on whom the continued successful operation of a business depends. The purpose of key person insurance is to help the company survive the blow of losing the person who makes the business work. Many a times we ignore the most important person in the company so call – “keyman” – we take for granted that everything will be okay. Then comes a day when something really go wrong with the most important person in the company and everything comes a immediate stop…..WHAT’S NEXT?
TAKING A SERIOUS VIEW OF A VALUABLE PERSON AND ENSURE THAT THE RISK IS TRANSFERRED TO INSURANCE COMPANY
Keyman insurance can be defined as an insurance policy where the proposer as well as the premium payer is the employer, the life to be insured is that of the same employer’s key employee (Keyman) and the benefit, in case of a claim, goes to the employer. What Is Key Person Insurance? Key person insurance is a type of life insurancepolicy that provides a death benefit to a business if its owner or another significant employee passes away, according to the Insurance Information Institute. Without this person, the business would come to a stop. How much insurance is needed depends on the business, but in general, a business should buy whatever they can afford. Companies should ask for quotes on $100,000, $250,000, $500,000, $750,000 and $1 million policies, and compare the costs of each. ALL THIS ARE IN USD. Well let me ask you again – is your company secured with the KEYMAN!!! – if your answer is NO……run to the insurance company and get it sort it out so that your company can move forward professionally!! Remember the Company is the beneficiary!!!!
WHO IS THE BENEFICIARY?
Key man insurance is taken out by a business as the owner of the policy that covers a person or persons, the insured, within the business. The business pays the premiums to the insurance carrier, and if the key employee dies, the proceeds are paid out to the life insurance beneficiary, which is the business. SO START MOVING!!!
For more information of KEYMAN insurance and how you can protect your company and benefit the best from Insurance company – CALL SHARON @ 09199104104 or email her @ firstname.lastname@example.org.
Article by : Strategic Coach and Mentor