Key Person Life Insurance

Most companies have at least one employee who is key to the
success of the business. Whether it's the owner, a partner, a
majority stockholder or someone with a high level of expertise,
the loss or death of that person could mean financial ruin for the
company.  Key-person insurance protects your company's
solvency in the event of losing a key employee or founder.
Protecting your company from such potential disasters not only
makes good business sense, but lenders and investors also
generally require that a business carries key-person insurance to
protect their loans and investments in the company.  

Many insurance companies require a company's board of
directors to pass a resolution affirming the purpose of the
business life insurance policy. And the key employee must also
be notified about and agree to the purchase of insurance on his
or her life.  The business typically owns the policy, pays the
premiums and is the beneficiary. Most businesses purchase
key-person insurance as a permanent life insurance policy;
however, term life insurance may be less expensive and can be
bought to cover the key-person until he or she retires. The policy
can be transferred to the departing employee as a retirement
benefit or to a different key person upon the retirement of the
original key person.


Key Person Life Insurance
Somerset
 Life & Health Insurance Agency, Inc.                                      1-908-231-0303