Sentences with phrase «of key employee»

Key person life insurance is an arrangement by which a business buys a life insurance policy on the life of a key employee.

Often times the business will use cash value life insurance to cover the life of the key employee (s).

A Life Insurance policy on the life of a key employee whose death would cause the employer financial loss, owned by and payable to the employer.

About 10 years ago, I saw a highly successful construction company go out of business because of the loss of a key employee.

Key Person: «Key man» insurance protects the business from a financial loss due to the sudden death of a key employee.

What you need to do is to look out for your company's interest as well as the interest of your key employee.

If you use term insurance to protect your business in case of the death of a key employee you should also consider convertible term.

A business would suffer loss upon the death of a key employee or a key shareholder.

Key Person Insurance Is Ideally About Protecting Your Business From the Loss of a Key Employee or Business Partner, While Also Providing Value, Security and Incentives for Key Performers.

Cash benefits to beneficiaries can also be used to pay off debts, continue daily operations, and help a family member of a key employee to take the reins so that the business survives.

The principals of the company can also use this policy to protect the company in the event of the untimely death of a key employee.

The death benefit could be assigned to the employee's loved ones and the accruing cash value in the policy could ultimately be used by the employer to fund payments (retirement income) of the key employee.

How a split dollar plan is structured will depend upon the specific goals and concerns of the business owner AS WELL AS the specific situation of the key employee.

This very competitively priced plan provides long term protection that can help in meeting a wide variety of needs, including income for a surviving spouse and / or other loved ones, funds for paying estate taxes, funding for business continuation plans, and / or protection against the loss of a key employee or business owner.

There is no easy formula for determining the value of a key employee.

Corporate - owned life insurance to fund a business perpetuation plan or to insure the life of a key employee

The company's cost for the plan is minimal and may be funded with a cash value life insurance policy that is purchased by the company for the benefit of a key employee.

The key employee might be a source of capital if the loss of this key employee would damage the credit rating of the business.

For example, hedge funds, research and bio-medical firms, companies with special contracts and other businesses with patents and proprietary systems, all rely heavily on the niche expertise of a key employee or business owner.

The insurance allows a business to continue operations without a major disruption in the event of a key employee's death, providing peace of mind to owners and shareholders in the company before and if such an incident occurred.

Your organization could lose profits generated by the special talents or contacts of the key employee.

There are two primary methods of key employee valuation to determine how much employee insurance is needed:

What would happen in the event of an unexpected death of a key employee or partner?

For an employee who owns no equity in the business, the maximum amount of key employee life insurance a business can buy is 10 times the employee's annual income.

Key man disability insurance is purchased on one or more key people in a business to protect the business from the economic loss associated with the disability of a key employee.

The goal when valuing a key person for life and disability insurance is to get the correct amount of coverage based on the specific needs of the business but that also corresponds to the realistic loss associated with the death or disability of the key employee from the insurance company's viewpoint.

You can't count on cash flow to for sure be there when needed, like for the unexpected death of a key employee.

Buying a key person life insurance policy can be very helpful by making sure the company survives the loss of a key employee.

Your lender will often seek collateral as security and the death of a key employee may pose too much of a risk to your lender.

It is an inexpensive tool to protect a corporation or other business entity from the damaging effects of the loss of a key employee or business owner.

Life insurance can do more than help your business recover from the death of a key employee.

Key man insurance provides peace of mind to business owners and shareholders alike knowing that the business can continue operations without major disruption in the event of the loss of a key employee.

To protect a business in the event of the death of a key employee, Key Person Insurance, payable to the company provides the owners with the financial flexibility needed to either hire a replacement or replace the financial loss incurred by the business.

Protect your business against the financial implications that can arise from the untimely death or disablement of a key employee.

Key man insurance, commonly referred to as key person insurance, is essentially life and / or disability insurance purchased by a business on the life of a key employee or business owner to offset financial losses that would arise from his or her death or extended illness.

In the event of the key employee's death, the policy's death benefit is payable to the company which can be used to provide continued supplemental benefits or to provide a lump sum benefit to the executive's named beneficiary.

Corporate owned life insurance to cover the untimely death of a key employee or to fund a business perpetuation agreement

Term life insurance can be a powerful tool in making sure a business can continue running even after the death of a key employee.

Your organization could lose profits generated by the special talents or contacts of the key employee.

You can't count on cash flow to for sure be there when needed, like for the unexpected death of a key employee.

Corporate - owned life insurance to fund a business perpetuation plan or to insure the life of a key employee

Company - owned life ins is 1 way to help protect a biz from financial problems caused by the death of a key employee.

To protect a business in case of the death of a key employee, key person insurance, payable to the company, provides the owners with the financial flexibility needed to either hire a replacement or work out an alternative arrangement.

Key person insurance protects a business in case of the death of a key employee.

The key is if a business owner pays premiums on behalf of a key employee as part of an executive bonus plan, deferred compensation plan or split dollar plan, the premiums may be deductible if they are recognized as income to the employee.

The death proceeds may also be used to make payments to the survivors of the key employee.

Key - employee insurance indemnifies you against losses resulting from the death or disability of a key employee in your firm, including yourself or your partners.

Make sure the document includes all the information you've gathered so far: supplier contact information, backup suppliers, employee contact information, the roles and responsibilities of key employees, major client contact information, backup equipment and IT data, and the place of the off - site recovery location.

Three of his key employees had met him at the elevator that morning, personal possessions in hand, and announced they were off to build an agency of their own.

As one of our key employees, I want to informally pose some simple questions that can help me to understand the factors that cause you to enjoy and stay in your current role,» writes Sullivan.