Key Person Insurance
Do you have someone in your small business that is absolutely crucial to your operation? If so, consider safeguarding your company’s future while affirming that employee’s value with a key person insurance policy from O’Connor Insurance Agency.
Key person insurance (or “key man insurance”) is basically a life insurance policy for a key person in a business, typically an owner/founder, a skilled executive, or that indispensable creative genius. Your company purchases the policy and then is the beneficiary of a death benefit paid out in the event of that person’s untimely death while they are your employee.
In the unfortunate event that the policy is used, the payment can be used to cover expenses until a replacement is found. Or, if the loss of the person is profound enough, the payment may be used to settle with creditors and to provide severance pay for employees.
Even if the death benefit is never needed, key person insurance can provide other benefits. For example, it can be a way to honor and retain critical employees or as a bonus to attract new talent. Also, holding a key person policy can increase your company’s creditworthiness to investors or even be made available as a loan to the business if needed.
Although companies hope to never need the full benefits, a key person insurance policy offers many potential advantages to your Massachusetts or Connecticut business. To find out more about how a key person policy can work for you, contact O’Connor Insurance Agency today to speak with one of our agents.