In any organization, there are several employees who hold the operations of the business together. Life insurance for a key person makes sure that if one of these employees were to pass away, the business would have the resources needed to ensure their success moving forward. Without this form of insurance, businesses could miss out on profits or lose valuable customers if a key person dies.
How to Tell if You Need This Insurance
Many businesses do not have life insurance for a key person because their owners or founders assume it is not a necessity. While it is not always needed, such as when a business is run by multiple people who can easily perform every employee’s role, small businesses and those with employees who possess specialized skills can greatly benefit.
For example, a man works diligently for several years to hold a budding company together. In a tragic car accident, he passes away and leaves a thriving business with several employees and vendors behind. Without key man insurance, the business would be left in a lurch and could possibly even fail. With this type of insurance, the business would have access to the resources needed to maintain its profits, hire and train new personnel, etc.
Acquire a Policy Today
Those who have yet to acquire a key person life insurance policy for their business should do so sooner rather than later by contacting an insurance professional in their area.