Key Person Benefits, or Key Person insurance, is also generally known as Key Man insurance. This particular type of insurance policy is taken out by a business for the purposes of compensating for financial loss that may occur in the event of the loss of a key individual in the business.
Key Person Benefits are essentially for the purpose of ensuring business protection and succession, facilitating the continuity of the business despite the death or incapacitation of an important member of the organization.
What is a Key Person?
An individual who is established as a key person is basically someone who brings to the table financial success for the business. Their expertise, skills, knowledge, and leadership play an essential role in securing profits for the company.
Naturally, in the event that such a person passes away or is unable to contribute to the business due to some other form of incapacitation, there is a direct and considerable impact on the company’s financial gains and continued success.
A key person could be anyone in a leading position in the company, including managing directors, sales directors, IT specialists, company directors, founders, executives and more.
The Main Benefits of Key Person Insurance
Key person insurance can serve to improve retention of key individuals in the company
In the scenario where a key person passes away, the business receives money to make up for the financial loss
Key person benefits can be used in place of salary hikes for executive level key individuals, which saves income tax
Key Person insurance premiums are billed to and paid for by the business in question. In the event of a key person’s passing or critical illness, the business receives the benefit payments, which help prevent significant financial loss.
Looking to protect the continued profitability and gains of your business? Invest in a Key Person Benefits insurance program!
JS Benefits Group can serve to assist you in this process. They offer skilled and experienced employee benefit consultants in Delaware, Pennsylvania, and New Jersey.
With their help, your business can invest in the right Key Person Benefits insurance plan, one that is affordable and meets the needs of your company. They are also the right resource for all your employee benefit plan needs!
Give them a call at (877) 355-6070 to start the process to secure the success of your company!