Key Person Insurance Coverage

Key Person Insurance Coverage

Here is a key question for every business owner: What impact would the death or disability of the owner OR a key employee have on the continued success of the business?

Objective #1: Indemnify the business for the loss of a key employee.

Issues to consider:

  • Does the business have key employees who make a substantial contribution to the success of the business?
  • Does the business owner know what the financial impact would be if a key person (including the owner) died?

Objective # 2: Address the financial consequences of the owner or key employees’ total or partial disability.

Issues to consider:

  • How would the business continue one’s income in the event of total/partial disability?
  • What would the impact on business cash flow be if the choice is made to pay the disabled owner or employee?
  • How would business overhead expenses be paid in the event of total or partial disability?

Objective # 3: Guarantee business loan repayment at an owner’s death

Issues to consider:

  • When a business borrows money, it is a legal contract
  • How is the business loan to be repaid in the event of unexpected death? Are personal assets at risk?
  • What would the consequences to business viability be of having to repay business loans in the event of death or disability?

Every single one of these issues can be mitigated by a carefully designed life insurance and/or disability income policy. Our agency can help you with this - please contact us.

Got questions about key person insurance coverage? We're here to help.

Our Life Insurance Expert

James P. Cahill, CLU

James is a 40-year veteran of the life insurance marketplace in the Greater Chicago area. His career has included a 22-year association as a branch manager and senior account executive with Hartford Life, earning top national office and top national account executive designations, while qualifying for award-conference level in 20 of those 22 years.

Our value proposition is a simple one.  Offer a thorough and cost-effective solution to business clients through careful analysis, consultation, and implementation.

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