Sentences with phrase «of key person»

For most businesses, 5 - 10 years of the key person's compensation will be sufficient and affordable.

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

Definition: Key Person Insurance is life insurance purchased by the business organization on the life of the key person or persons, with the organization listed as the beneficiary.

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.

In addition, the employer will be the payer of the premiums, controlling all aspects of the key person's coverage.

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.

Definition: Key Person Insurance is any type of life insurance that is purchased by the business organization on the life of the key person or persons, with the organization listed as the beneficiary.

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

Covers salary of the key person during period of extended absence due to critical illness or disability

Other key benefits that make term insurance the perfect solution for the loss of a key person include:

The amount of risk is determined by calculating the costs that will typically be incurred by the loss of the key person.

The loss of this key person can affect sales, productivity, and overall morale.

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.

So, if your company is the beneficiary, which is kind of the point of key person insurance, then the premiums are not deductible (similar to a personal life insurance contract) because the death benefit is not subject to taxation.

Your business and your family can be protected in case of the loss of a key person which can cause financial losses.

The goal for key person insurance is NOT to facilitate a buyout but rather to compensate the business for the loss of that key person.

These types of life insurance plans can also provide additional benefit — and that is for the family and other personal survivors of the key person.

Sometimes a business may have an employee that is so good at their job that the loss of this key person could be quite costly.

We understand that the purchase of key person life insurance can entail a number of different variables, and there are several different ways in which these plans can be set up.

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.

This is because the loss of a key person could affect a company financially.

Depending upon the expertise of the key person, it may be very difficult to find a capable replacement quickly.

Key man life insurance can give you peace of mind that your business is protected in the event of the loss of a key person.

You may want life insurance owned by your business to cover the life of a key person or to fund a business perpetuation plan.

Key person insurance policies cover the untimely death, disability or sudden departure of a key person, but they can also provide financial support while the person is recovering from an illness or injury and is unable to work in their previous capacity.

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.

Key man life insurance is necessary even if your business plans to shut its doors after the loss of a key person; the money can be used to take care of closing costs, investor payoffs, and severance pay for employees.

ANSWER: Depending upon the expertise of the key person, it may be very difficult to find a capable replacement quickly.

Depending on the insurance company, some may ask about the specific health details of the key person (others will simply get this information from the insurance exam).

There are several valuation methods commonly used to determine the proper amount of key person insurance needed from both the business and insurance companies perspective.

It's insurance coverage on the life of a key person of a business.

With both key man life and disability insurance, the business secures the policy on the life of the key person.

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.

It enables the business to meet outstanding obligations at the time of the key person's death and covers the expenses necessary to keep the business running smoothly (as well as any loss of income) while a replacement is sought.

To secure key man insurance, the business must apply for a life insurance policy on the life of the key person.

The amount of the policy is usually paid directly to your business so it can be used to cover the financial losses incurred by the death or disability of a key person.

There are several valuation methods commonly used to determine the proper amount of key person insurance needed.

But does your company need this kind of key person life insurance policy?

Level term life is the most popular form of key person term insurance and is available in guaranteed periods of 5, 10, 15, 20, 25 and 30 years.

The health of the key person is the most critical factor in determining the price of a key man life insurance policy.

The company buys the insurance to cover the life of the key person and is also the policy beneficiary.

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 some cases, more than one person will be needed to cover the responsibilities of the key person.

They are useful in situations where term insurance can not be purchased due to the age of the key person or when coverage needs to be extended over a person's lifetime.

The policy term is for the specified time period or until the person being insured is no longer with the company in the capacity of a key person.

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

Life insurance protects your family from your financial debts and obligations after you die by providing a death benefit, but it also may be used for business purposes to compensate a company for the loss of a key person in the company.

If the key person were to die, the company will receive the death benefit of the key person.

Consider the benefits of key person disability income insurance for a business.