• It will create a leadership void.
  • It can adversely affect company's financial health.
  • It may result in loss of confidence by creditors.
  • It will result in loss of production and ultimately loss in profits.
  • It may result in a sudden crash of business operations.
  • It will result in Loss of credit, orders, and a decline in customer service.
  • It may results in customers and employee turnover.
  • It may create uncertainty and fear among employees and investors.
  • It will generate a need for additional funds to recruit, hire and train a replacement.
  • It may create a threat to the survival of the business in some cases.
  • Is it going to impact your company's profits?
  • For how long it is going to impact your profits?
  • How much will be a cost to replace the person?
  • Is it going to impact your company’s credit?
  • How will this impact your clients?
  • How this is going to impact your employees?
  • 1. Tax-Free Benefit: In the event of death of the key person the insurance Company will pay a tax-free lump sum payment known as death benefit.
  • 2. Meet Immediate Cash Needs: Key person insurance will provide funds to meet the immediate cash needs of the business.
  • 3. Replacement for Lost Revenue: Key person insurance benefits can be used to help a business replace lost revenue while searching for a replacement.
  • 4. Repay Loans & Debts: Key person's insurance can help meet business expenses and repay remaining debts and outstanding business loans.
  • 5. Cover Replacement Costs: It will cover the expenses of finding, recruiting and training a replacement employee for the key person's position in the event of his death or disability.
  • 6. Provide Working Capital: Key person insurance provides immediate working capital required to manage day to day operations of the business.
  • 7. Provide Business Continuity: It helps in business continuity in case of death or disability of the owner or the key person.
  • 8. Helps in Business Survival: It will reassure creditors, customers and employees that the business will survive even if a key person has died.
  • 9. Fund a Buyout Agreement: Key employee insurance can help to purchase the deceased or disabled person's share in the company.
  • 10. Provide Financial Assistance: It can provide financial assistance to the family of the deceased or a disabled key employee.