Three key plans that are often used by business owners include buy / sell agreements, cross purchase plans, and the purchase
of key person life insurance.
All to often a business will purchase
key person life insurance on a valued employee, but will neglect to consider what might happen if that key employee were to suffer a disability.
Investing
in key person life insurance, also called key man insurance, could help your company if a key person or key people were suddenly unable to continue to work.
This is an excellent rider to consider and is very beneficial in cases of business owners, such
as key person life insurance or in a buy - sell agreement.
Learn how to protect your company in the event of a prolonged absence or death
with Key Person Life Insurance and other types of Business Life Insurance.
Life Insurance Blog can assist you in going through the proper channels and establishing your company with the most
suitable key person life insurance policy at the best rate.
Key man life insurance, also
called key person life insurance, is protection designed to sustain a business or organization in the unfortunate event it loses one of its most valuable employees, executives or owners to a sudden and untimely death.
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.
Susan Swanson is the sole owner of a small business and buys
key person life insurance on Chris Smith, who has been the company's leading salesperson for several years.
Key person life insurance provides money for the business to continue after a key person dies, which may take months for the company to find and train a new employee of that person's caliber.
Susan Swanson is the sole owner of a small business and
buys key person life insurance on Chris Smith, who has been the company's leading salesperson for several years.
There's no joy in thinking about losing a friend / business partner, but
with key person life insurance, you can avoid the pain of a financial tragedy on top of the emotional distress.
Need help setting up
a key person life insurance plan or buy - sell agreement for your business?
Clark Insurance offers a variety of business insurance options, including everything from a business owner's policy and liability protection to complete employee benefit plans and
key person life insurance.
On the other hand, if your company decides to sell
the key person life insurance policy, you may have to pay taxes, depending on the size of the settlement, cash value of the policy, and the amount that's been paid in premiums.
If your company is the sole owner and beneficiary of
a key person life insurance policy, there are no tax implications for the insured employee.
Key person life insurance is typically only required if your company wants to obtain a loan or investment.
Are proceeds earned from
the key person life insurance considered income and the business will be taxed?
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