Sentences with phrase «death of the key person»

Business continuation is difficult enough under normal circumstances, but if it takes place following the unexpected death of a key person or owner, the complications can increase exponentially.

• It can be used to cover the risk of business loss due to untimely death of key persons by cash strapped enterprises as key man insurance at low cost.

Life insurance can protect against the untimely death of a key person and create an influx of cash into the business during this transitional period.

KEY PERSON INSURANCE The sudden, unexpected death of a key person could result in a substantial loss to your business - the loss of expertise, as well as the high cost of securing and developing a competent successor.

At the death of the key person, your business (the policy beneficiary) will file a claim with the insurance company to receive the death benefit.

In the event of the death of the key person, the company receives the policy proceeds and can use the funds at their discretion.

Copies of the recorded assignment are then sent to the lender or «assignee» as proof they have the first rights to the policy proceeds in an amount equal to the loan balance in the event of the death of the key person.

At the death of the key person, the bank only gets the loan payoff balance, and the remainder of the death benefit is payable to the primary beneficiary, which is the company.

A business can protect the risk associated with the death of a key person by purchasing an inexpensive 10 - yr level term policy on the life of the key person with the company being the beneficiary.

Key person life insurance offers a death benefit that can help cover financial losses that occur at the death of a key person.

At the death of the key person, your business (the policy beneficiary) will file a claim with the insurance company to receive the death benefit.

With a collateral assignment, in the event of the death of a key person, the lender gets the exact loan balance amount due with the business receiving the remaining insurance proceeds.

The business applies for and owns the life insurance policy, pays all premiums and is the beneficiary of the policy in the event of the death of the key person.

These costs are related to the loss of revenue, loss of clients, possible loss of pending sales, and any other ways the business would be affected by an untimely death of a key person.

The business owner would then have the necessary funds to pay the expenses resulting from the death of the key person:

You might need life insurance for business purposes, like protecting against the untimely death of a key person or to fund a business perpetuation plan

It provides the protection the company needs against the death of a key person and leaves the door open for the company to be as creative as they want to be in making sure that the key person knows they are valued for more than just the death benefit.

These costs will be related to loss of revenue, loss of clients, loss of pending sales, and many other ways the organization would be affected by an untimely death of the key person.

The real estate broker would then have the necessary to fund the expenses that result from the death of the key person:

Knowing that the success of the broker's organization is typically predicated on the success of a small group of people, every real estate broker should consider Key Man insurance to ensure the continuation of the organization in the event of the death of a key person.