Your company has a few vital players that keep it moving forward, visionaries whose knowledge and skill are central to your operation, who can’t simply be replaced if something unfortunate happens. While your key people will eventually need successors, you also need a hedge against the turmoil that losing them could cost. That’s where key person life insurance becomes vital to your business interests.
Key person policies are built to allow companies to take out insurance that benefits the company in the event of an employee’s death. This provides a base of resources for overcoming the transition and its unexpected consequences, from additional marketing for the new position to the costs of interim management solutions.
If you are trying to figure out who you need to consider taking out key person life insurance coverage for, you need to talk with professionals who deal with key person policies every day. They will be able to review your coverage and options and help you decide which members of your organization are vital to its continued success. They will help you review your coverage options, and they may even be able to advise you about ways to save on the expense of multiple policies, depending on your exact volume of need.