Insurance

Keyman Insurance
Keyman life insurance is insurance purchased by a business on the life of an owner or employee whose services contribute substantially to the success of the business. The company is the owner, the premium payer and the beneficiary of the policy. The objective of Keyman Insurance is to indemnify an organization against the monetary loss resulting from the death of a key employee.

What the insurance will do:
1. Keep the business running.
2. Assure creditors that their loans are safe.
3. Assure customers that the business will continue to operate.
4. Cover the special expense of finding, attracting, and training a new person to replace the missing key man.
5. Cover the costs of the mistakes the successor will make until he or she learns the things the deceased knew from experience.
6. Offset the reduction in income so that fixed overheads can be met.

Additional benefits
1. Provision of a readily available fund. The cash value is obtained quickly and without publicity when a business has a sudden need for cash to take advantage of unexpected opportunities or to meet unforeseen emergency expenses.