Sentences with phrase «employee dies the business»

Typically designed so that the surviving business partner would have the money to purchase the company interests, life insurance for businesses can also be structured as «key person insurance,» where if a key employee dies the business owner will receive a benefit to help offset the financial impact of losing the key employee.

Not exact matches

Other policies to consider include: • Key employee insurance life or disability income insurance compensates a business when certain key employees become disabled or die.

But in reality, Canadians make this place Canada, and as we get old and die, we need to be replaced, if only so Canadian businesses still have an employee and customer base.

You might also want life insurance to cover college expenses for your kids if you die, or pay off your mortgage at that point, or to pay for funeral expenses, or to protect the income your business gets from a key employee.

Key employee insurance is designed to help protect a business from the financial losses that may occur when a key employee dies.

The key employee usually has special skills that, if unavailable, would harm the business if the employee died, resigned, or became disabled.

(Small businesses may wish to consider purchasing life insurance policies for key individuals, such as an owner or top employee, to help prevent financial distress if that person were to die.)

In the worst - case scenario, of your company so dependent on an employee that it could potentially go out of business if they were to die, key man life insurance can also provide an alternative to declaring bankruptcy.

This covers what happens to your business when you die, what happens if a key employee or a business partner dies, and how to cover term life insurance benefits to employees.

What would happen to your business if you, one of your fellow owners or a key employee died tomorrow?

With this coverage in place, if a covered employee dies or is disabled, the insurance proceeds are generally paid directly to the business tax free and can be used for any purpose.

It is also a logical way to insure that a business can retain options and flexibility if a key employee dies or is disabled.

If the key person dies, the death benefit is payable to the business and not the key employee's family.

In the event that the key employee dies, the proceeds of the policy are paid to the business, usually tax free.

In the event the key employee dies, the business receives the lump sum policy proceeds that can be used at the company's discretion to stabilize the company until a replacement employee can be found.

Some employees are so vital to the success of a business that should they suddenly leave the company because they were severely disabled or died unexpectedly, the company could be virtually ruined overnight.

If you, a fellow owner, or key employee were to die unexpectedly, how would this affect the business?

Should that employee die unexpectedly, the payout would buy Barbour some time to replace that employee without worrying about the financial implications for the business.

(Small businesses may wish to consider purchasing life insurance policies for key individuals, such as an owner or top employee, to help prevent financial distress if that person were to die.)

In the event an owner, partner or key employee dies, life insurance could also ensure business can continue.

They fund buy sell agreements and they provide cash to a business if a key employee should die.

If not, then a second to die policy may be used to fund a buyout of the business by a key employee or third party.

Business people may buy term life policies to protect the business should a key employee die without Business people may buy term life policies to protect the business should a key employee die without business should a key employee die without warning.

When the key employee died the bank got quite uncomfortable because the owner of the business was on older man... and he did not know the details of the bank's relationship with his company.

It is used by business people to cover outstanding loans, to fund buy - sell agreements in the event that a partner or shareholder dies in the initial years of a new business, or for key employee life insurance.

Or, businesses will sometimes insure an employee with specialized skills so that if he or she dies, the business will have cash flow until they find a replacement.2

If the employee dies, the business receives policy proceeds.

A key employee life insurance policy is put in place to protect a business from losses if an invaluable employee dies.

If one of your most trusted employees or partners died unexpectedly, how quickly would your business be able to recover from having lost their skills, contacts, and experience?

In one of my efforts to obtain references about a potential employee, I found one company out of business, one supervisor moved to places unknown, and one supervisor who had died.