Our country needs small businesses to keep going. But when a key person leaves a small business, the business needs help to keep going. You need to know about the options that are out there.
Anyone who is important is a "key person."
In small to medium-sized businesses, the key person may be the business owner, a top salesperson, or the person who handles the finances. What would happen to that business if one of these important people died all of a sudden? Until a replacement is found, there could be a rough time. If the owner died, the business might go out of business as a result. If the top salesperson leaves, the business might lose some of the customers that kept it going.
YOU NEED LIFE INSURANCE ON THE KEY PERSON
The key person is someone who is very important to the business, who can't be replaced easily, and whose knowledge is very important to the business. If a business doesn't think about how the death of this person might affect the company, it may be setting itself up to fail. There are a few easy steps that can be taken to make sure the business is ready for anything.
LIFE INSURANCE FOR KEY PEOPLE IN THE COMPANY
Key person life insurance can help a business in a number of ways. It can give them the tools they need to set up a plan to keep their business going. It can give you the money you need to find a replacement and train them so they can do the work of the person you lost.
When the owner's death would normally mean the end of the business, key person life insurance can be used to pay off existing debt and make a smooth transition.
DO YOU CARE ABOUT KEY PERSON LIFE INSURANCE?
Whether or not you need key person life insurance depends on your situation. Maybe you haven't even thought about it. If your business depends on you or a few other key people, you should think about what you need to protect.
