Here on the blog we aim to help readers better understand the life insurance landscape, as many if not most people have no clue as to how extremely valuable the right plan can be. Not every plan is right for everyone, and it’s easy to get talked out of an expensive plan that doesn’t have the right bottom line. That’s why we are here!
No financial case is the same, but by working with high income people from all walks of life, we’ve been able to establish confidence in knowing we can help find the right plan for just about anyone. You can also see more about our various different plays in the playbook by listening to/viewing the MBK Beat Podcast!
Today we wanted to take a high level look at what’s known as “Key Man” or “Key Person” Life Insurance, who should have it, and how it all works.
What Is Key Person Insurance?
When you are a business owner, you understand how important the KEY members of the team are. Maybe the most important person is you. Who are the Golden Geese? These people are KEY to the business surviving, should something tragic happen to them, the business would be in grave danger. Key Person Insurance can help a company endure an unfortunate death or disability to the owner or core employee, by providing insurance proceeds to help recover lost income or help train a replacement.
Who Should Have Key Person Insurance?
Short answer..If you own a business, you should have it.
Obviously owning a business isn’t easy, and anyone who’s done it (or tried to do it!) knows that costs and bills mount, and something like life insurance for a key person definitely sounds like a great idea, it just isn’t in the budget. This is a common thought for business owners, and we have seen this perspective shared by many over the years. The reality is that any responsible business owner knows who their “Golden Geese” are that lay the golden eggs.
Regardless of how long you’ve been a business owner, or what business you are in, you should have something in place to not only protect the business, but every employee and their family that will be up Goose Creek if something happens.
Well How Much Does ‘Key Man Insurance’ Cover?
This is a great question. As we mentioned, and always conclude, no situation is the same. If you like what you smell here, it’s best to meet up with Mark and take a moment to see what we are looking at. The answer to this question depends on a few things. Obviously your company size and industry matter, but what really matters is what loss will need to be covered in the event that this “Key Person” perishes, or becomes disabled. To understand this you will work closely with Mark to fully understand everything you are looking at, to make the best decision FOR YOU.
It get’s difficult when assessing someone’s monetary value to the company. Trust an expert to help you better understand. The more you understand, the less you have to be afraid of. There are a multitude of different options to determine what amount of coverage is right for you and your company, but usually comes in pretty standard increments– $100,000, $250,000, $750,000, $1 million etc. We will work with you to help determine the right amount, and right plan to best suit your needs.
.. but I already Have Liability & Property Insurance
Understanding once again, that every situation is different, this insurance is specific to help cover the HUMANS that keep your business and building thriving. What good is a property or business without any Golden Geese? If you are a business owner and you think you can’t afford ANOTHER insurance policy, let’s take a look. There are different strokes for different folks. The cost itself is completely dependent on the situation, and we will need to take several things into account. Things like..
- Age, Gender, Health of the Insured
- Insured Occupation & History
- Insured Total Compensation
- Amount of Coverage Your Business Needs
The life insurance landscape is ever changing, despite its’ seemingly ancient reputation. We are someone who truly does love what we do, because it enables us to help people. Help people better manage their money, but also help them feel comfortable that their money is in the right places, and their loved ones and lifeblood are safe in case of emergency. We work with individuals from just about any industry you can think of, and love working with business owners who weren’t afraid to stick their flag in the ground. If you’d like to learn more, give us a call anytime or reach out via our contact form! Thanks!