Key Person Insurance

Key Person Insurance

Key person insurance, known as key man or key employee insurance as well, is a type of coverage that protects your company in the event of a sudden death of someone who is vital to your business.

This person could be an executive, one of the company’s owners, a top salesperson, or another individual who is “key” to the company’s success. Having this type of insurance in place is a great way to protect your business and to foster confidence among the shareholder, business owners and even the other employees.

Having key person insurance allows your company to proceed with business as usual in the case of a death of one of the top figures in the company. Without this type of insurance, you could face many costs and problems that could cause the company’s ruin. Many companies throughout Ontario are utilizing this type of insurance because it gives them the peace of mind they need. While no one wants to think that a friend and a valuable member of the staff could be gone, it does happen. It makes far more sense to have your insurance in place so your company can survive.

You have to realize that key person insurance, while it is a form of life insurance, offers much more. It offers a chance for your company to continue. In addition to life insurance, you may want to have key person disability insurance as well. Disabilities are more prevalent than deaths in a company, and it makes sense to have both the key person life and key person disability insurance in place.

In the event that one of the key people at your company dies, the money from the insurance policy is going to be very beneficial in getting your business in order quickly. It will make the process of training and restructuring the company easier for you, and it can protect you against all manner of risks. It’s important to remember that the key person insurance is to protect the company and not the person insured. He or she should have life insurance of his or her own.

You don’t want to risk your company, and you would never consciously make bad business decisions that could harm your company. However, neglecting to have key person insurance is a bad business decision. Start looking for a policy that will work for the key people in your business now. You don’t want to wait until it’s too late.

Please feel free to contact Aman Kapur at www.youinsuranceguy.ca or by phone 1-416-509-2540 to assist with the plan of your choice. Or simply click here to request a quote.

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