Key Person Insurance

What is the key person insurance?

Key person insurance is an important form of business insurance. It is an insurance policy, purchase by a medium or small business in order to protect business from losses that may occur in case of death or disability of a key person specified in the policy.

Who is eligible for key person insurance?

An employer may take a key person insurance policy in the form of; life, disability, critical illness or health for any employee whose knowledge, expertise, work, or overall contribution is unique and valuable for that business.

Why a business need key person insurance?

The employer takes it to offset the costs (such as temporary hiring help or recruiting a successor) and losses (such as decreased ability to operate until successors are trained). Key person insurance can support small and medium size of businesses.

© 2018 S&H Financial and Insurance - All Rights Reserved.