Key Person Insurance

If you are the Key Person in a business, you are the most important asset that the business owns. The entire business is dependent on your skills and energy. Your loss from the business could be financially crippling and lead to business shutdown. It is advisable to place life insurance on yourself through the business. The intent here is to provide immediate working capital in the company while the business reorganizes to address the loss of key person. The creditors, employees, customers could all be taken care of till your spouse is ready to handle and hire an expert manager so that the show could go on. There could also be provisions for payouts of insurance proceeds tax free to the family through an account called ‘capital dividend account’.

Key Person Insurance helps you achieve your dreams regarding the growth of your business and its perpetual existence for the benefit of next generations even if you were to pass away / faced with a health condition that renders you physically or mentally incapable of handling the business.