Key Person Insurance
Key Person Insurance
Key person insurance ensures your business can survive without key people
A key person in your business provides the ideas, drive, initiative and particular skills that generate revenues and profits needed for financial survival and growth.
Who is a key person?
They could be
- The founder and owner of a business who provides direction, momentum and builds reputation.
- A specialist, such as a designer whose skills are vital to business success
- A top sales person who builds key relationships and business contacts.
What happens when you lose a key person?
Revenue
A direct impact on sales can occur due to the loss of a key staff member meaning reduced revenue.
Expenses
You may have additional expenses due to needing to fund a replacement
Relationships and Contacts
You may experience a loss of key clients due to the loss of a critical staff member responsible for that relationship.
What is the Solution?
Develop a Key Person Insurance plan that provides cash flow to offset the impact on revenue by providing artificial revenue through a monthly benefit while the key person cannot work due to illness or injury. This could be to fund fixed expenses or fund a replacement employee.