Sentences with phrase «key person insurance insures»
As discussed above, key person insurance insures the company against the loss of key people.
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As discussed above, key person insurance insures the company against the loss of key people.
Not exact matches
Because key person insurance is simply life insurance that insures the company against the loss of a key business partner or key employee, the decision to purchase key person insurance necessitates some choices about the type of insurance that is most beneficial.
Key person life insurance policies are taken out by companies on their employees, with death benefits that are paid to the company, rather than to the insured person or to their estate or heirs.
Term insurance can also be used to insure a key person in the company so that business can continue smoothly after the key person's death.
A key person insurance policy designed to insure the company against the loss of a valuable employee is another situation where a business entity may be the designated beneficiary of the life insurance policy.
You may choose to insure this individual with key - person insurance to compensate the business for lost revenue and production if this key person were to become disabled or to die.
The key person being insured must provide written consent for the company to own a life insurance policy on him / her.
The goal when valuing a key person for life insurance is to get the correct amount of coverage (not under - insured or over-insured) based on the specific needs of the business.
(Some people buy term life insurance as key person insurance, insuring a key person in their organization.)
And level term life insurance is also great for covering a mortgage, insuring a key person, or protecting a small business loan.
Life insurance only pays benefits on the death of the insured person, but disability of a key player can be equally devastating to a business.
Another key feature of this government's health insurance scheme is that the insured people will receive cashless treatment at the network of hospitals upon displaying the smart card and following the verification process.
Because key person insurance is simply life insurance that insures the company against the loss of a key business partner or key employee, the decision to purchase key person insurance necessitates some choices about the type of insurance that is most beneficial.
Pricing insurance is all about assessing risk, and insurance companies consider a person's financial reliability (largely determined by their credit history) as a key factor in determining how risky that person is to insure.
Another important condition for keyperson insurance is that the key person insured must have less than a certain shareholding.
Life insurance companies will typically allow you to insure up to 10 or 15 times a key person's total compensation.