About Key Man Insurance

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As the name suggests, the key man insurance (or key person insurance) is a special kind of insurance that deals with the protection of a very important person in the business or businesses. Just like other types of life insurance, the benefits of an effective during unexpected death or disability. However, unlike conventional life insurance (or term or permanent), which protects one's family, this is aimed at protecting the family business, and shareholders and entrepreneurs who can get into financial decline if their "key man" is suddenly no longer able to contribute to the activity.

key man insurance on the basis of a common scheme of life insurance, disability insurance, with amendments. Since the long-term success of the company or companies often rely on the experience, skills and knowledge of only a few people, either employees or executives, it is recommended that these measures are taken, especially for those who grow older. As a key man insurance to do is to provide funding for the company to regain balance after the disappearance of open member. This can help cover the costs of training new employees, and rehabilitation faster after a period of decline in productivity. It can also help in paying debts, temporarily closing a business, paying employees or providing money for investors.

Although the difference between personal life insurance and key man insurance May seem obvious, it must be emphasized that the key man insurance only to protect the company, not key employees and executives. Basically, they operate in a similar way as mortgage protection insurance or term life insurance, with the only difference being that the user company. By paying premiums on behalf of "key person" when that person falls seriously ill or dies, the company receives a lump sum of money. As a user, the company can use the amount of money for any purpose, so it has nothing to do with the personal needs of policyholders.

Since the case of companies, the price premium is low compared to the insured benefit. Moreover, in most cases, premiums are not tax deductible. Last but not least, if the personal adviser is considered very important in the process of buying life insurance, the need for experts in the case of key man insurance is even more decisive, because it can significantly enhance the company's expectations about the future.

save up to 60% of the policy