Would the death or extended disability of any of the crucial members of your organization cause a financial hardship to your company?  Very often the answer to that question is "yes." If so, your company should consider Key Person Insurance for each member of the organization who has a hard-to-replace skill set or intellectual property that is uniquely vital to your organization's operations, revenue and overall profitability.


Although there is no legal definition for "key person insurance", in general terms it can be described as an insurance policy taken out by a business to compensate that business for financial losses that would arise from the death or extended incapacity of an important member of the organization. In other words, Key Person Insurance is a life insurance, total permanent disability insurance or trauma insurance policy that is used for business succession or business protection purposes. Such policies are usually owned by the business and the aim is to compensate the business for anticpated losses incurred with the death or extended disability of a key member and facilitate business continuity. You should know that Key Person Insurance does not indemnify the actual losses incurred but compensates with a fixed monetary sum as specified in the terms of the policy.


Key Person Insurance can be an important part of planning your organization's future sustainability. It is a complex subject with many options and considerations. Your agent can provide you with detailed information regarding Key Person Insurance for vital members of your organization.



*Note:   Please seek the advice of your agent and other trusted advisors when considering key person insurance policies for your business. There is a wide array of life insurance products available  today and it is impossible to cover each in depth here.


*With all life insurance policies any/all guarantees are backed only by the claims paying ability of the individual carrier.