Stewart Financial Services

Key Person Protection

Does your business include someone whose contribution is vital to your business? If yes, then Key Person Life Insurance should be a critical component of your Business Continuity and Succession Plan— especially if you are a small business owner.

 

Protect your business in the event of death, extended illness or total disability of a valuable owner or employee. As a business owner, you may rely on a number of key people for the successful operation of your company. Many businesses have been built around the strengths and skills of a few individuals whose capital, energy, knowledge, or experience that make them a valuable asset of the organization.

 

 

In the event of death or extended illness or disability of such a key person, your business could suffer from the loss of knowledge, expertise and management capability. Replacing such a valuable resource is often difficult and costly in terms of finding and training someone new, as well as meeting their income requirements.

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Key Person Protection is a Life Insurance, Disability Insurance or Critical Illness Insurance policy maintained by the company on the life of an important partner or employee. It provides funds to partially offset the economic cost to the company of losing such an employee due to death, extended illness or total disability.

Insurance Needs for Business Owners click here

 

 

For example, if an insured key employee were to die, Key Person Life Insurance would provide a tax-free cash payment that your business could use as working capital and to help manage issues related to the person's death. It may also provide:

Problems Facing Small Business click here

 

• A stabilizing factor to keep the business running -- recruiting, hiring and training your employee's replacement, which can be both time-consuming and expensive
• Reassurance to creditors to keep credit channels open. Paying off debt and dealing with creditors that wish to expedite loan repayment and alleviating potential lenders' concerns about your company's financial health
• A death benefit to the family of the deceased for a reasonable period of time to replace lost income.
• Reassurance to customers, employees or investors that the business will continue operating.

 

Secure the protection your business needs to survive the loss of a key person due to death or disability, contact Stewart Financial Services for more information about Key Person Protection and other products that can help you protect your business.