Key Person Insurance
Shield your business from unforeseen disruptions by securing key person insurance and providing vital coverage in the event of disability or death among key individuals.
Strengthening Business Continuity
Key person insurance is a crucial safeguard for businesses, offering life or disability coverage for indispensable individuals. This insurance ensures operational stability and financial security in the event of their absence due to disability or death. It provides for essential expenses, facilitates the training of replacements, compensates for lost income, and supports buyouts of former partners. Additionally, it aids in responsibly closing the company, managing debts, allocating funds appropriately, and covering severance packages.1
Term Life
Whole Life
Variable Life
Disability
Term Life Key Person Insurance
Term life insurance is the most popular type of key person insurance and lasts 35 years before needing to be renewed. With this type of insurance, a company pays premiums on a term life policy each month or each year to provide coverage if the insured passes away during the term of the policy.1
- Cost-Effective Protection — Protect against the financial impact of losing a key individual without overextending your budget.
- Flexible Policy Duration — With a 35-year policy before renewal, you can adjust coverage accordingly, ensuring ongoing protection for key personnel.
- Easy to Manage — Simplify securing essential coverage without navigating complex insurance requirements.
- Peace of Mind for Stakeholders — Offer peace of mind to stakeholders, reassuring investors, partners, and employees of the company’s resilience and stability.
Whole Life Key Person Insurance
Whole life insurance does not have an expiration date. This type of insurance policy exists as long as your company pays the premiums. While this type of key person insurance is more expensive, premiums go into a savings account, so the policy gains cash, value you can borrow against or withdraw from.1
- Permanent Coverage — Ensure your business is protected indefinitely against the loss of a key individual, regardless of when it may occur.
- Cash Value Growth — Gain potential cash value growth over time for additional financial benefits beyond insurance coverage.
- Access to Funds — Access the cash value accumulated through loans or withdrawals, giving businesses liquidity and flexibility in times of need.
- Long-Term Financial Planning — Provide a stable and predictable insurance solution, allowing your business to mitigate risks and ensure continuity.
Variable Life Key Person Insurance
Variable life insurance is effective as long as your company pays premiums. For this key person insurance, premium payments go into an investment account, making it a slightly more risky option.1
- Investment Potential — Grow investments
- Flexibility in Investment Choices — Choose from a variety of investment options within the variable life insurance policy so it aligns with company risk tolerance and financial goals.
- Tax Advantages — Gain potential tax advantages such as tax-deferred growth on investment earnings as part of the overall financial planning strategy.
- Tailored Coverage and Cash Value—Access customizable coverage and cash value accumulation to create a policy that meets specific needs and objectives.
Disability Life Key Person Insurance
Disability life insurance can be added to a key person insurance policy. With this type of insurance, the company pays a benefit of 40% to 70% of the key individual’s salary, so the company is financially protected if the insured experiences a disability that prevents them from performing their responsibilities.1
- Financial Security — Protect your company financially by replacing a portion of the key individual’s salary, ensuring smooth business operation if the insured is unable to work due to disability.
- Business Continuity — Maintain continuity, as the financial impact of a key individual’s disability is mitigated, allowing the business to adapt even in challenging circumstances.
- Peace of Mind — Demonstrating the company’s commitment to protecting key individuals and ensuring long-term stability and success.
- Enhanced Risk Management — Improve risk management strategies by proactively addressing potential disruptions and preserving the company’s reputation and competitiveness.
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Discover how key person insurance protects your business, ensuring operational stability and financial security.
Insurance services are Not a deposit, Not guaranteed by the Bank, May Lose Value.