Key Person Business Insurance — Why is it Essential?

Do you own or operate a small business? If so, are you prepared in case you, a partner, or one of your key employees are unable to perform their duties? Most small businesses are not ready for the financial risk of suddenly losing an integral person in their business, like a manager or co-owner. Without a plan put in place, sudden disability, illness, or death can have a devastating impact on the financial future of your business and entire estate.

That’s why Key Person Life Insurance is essential to safeguard your financial situation now and into the future. Learn how to plan for the unexpected with an insurance plan that will help protect your business.

What is a “Key Person?”

A Key Person is any business owner, partner, or employee whose skills are invaluable to the survival of the business. This person generally plays such a vital role that if they were to pass away, become disabled, or were unable to work, there would be few people able to step in and replace them immediately. This can equate to severe financial losses and closure of the business in some cases.

Why is it Essential?

Key Person Life Insurance is essential for keeping your operations running smoothly. The benefits payable from a Key Person Life or Disability Insurance plan could help to keep the business running while easing lenders concerns, paying off debt, and hiring a replacement. Without this insurance, you may not have the working capital to keep the business afloat once a Key Person is unable to perform.

How to Arrange for a Policy?

There are no shortages of options when it comes to arranging Key Person Life Insurance policies, so the challenge is narrowing down which insurance provider is right for you. We recommend beginning by researching the group you are planning to go with beforehand to get a better idea of their work culture and service techniques. Additionally, reading Google (and other) reviews will shed some light on their customer service skills and any red flags.

When it comes to your business, you should never put off preparing for tomorrow. You need to plan today to protect what you’ve built for the future. Our financial advisors at the Beacon Group of Assante Financial Management Ltd. aim to help you maintain success and propel your business forward.  Contact us today to learn more!