You may be in business with your partner's spouse
in the event of your partner's death. There Are Alternatives!
business has key employees who are critical to the overall success and
profitability of the business. We understand the importance of addressing
this contingent liability, and tell the story to our clients and
employee life insurance is insurance on the life of a key employee,
purchased to help reimburse an employer for the economic loss caused by
the death of the employee. As such, key employee life insurance is not a
specific type of life insurance policy; rather, it is an effective
way for a business entity to use life insurance.
general, a key employee can be anyone who--
responsible for management decisions.
2. is highly paid.
3. has a
significant impact on sales.
4. has a special rapport with
customers and creditors.
Losses from a
Key Employee's Death
business can typically suffer in four ways if a key employee
1. The death
may cause a loss of management skill and experience.
2. There may be a
disruption in sales or business production.
3. The business may
experience credit difficulties.
4. Losses also surface from expenses
associated with hiring and training a replacement for the key employee.