KEY PERSON INSURANCE Protect your most Valuable Asset 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.