Many small or family businesses would be devastated by the loss of one of their key employees. Running your business while trying to replace such an integral part of your team can be very difficult. Key Person Life Insurance offers a possible solution to some of your financial concerns at a time when every little bit helps.

What is it?

Key person life insurance can help offer peace of mind in knowing that the financial stability of your business is protected in the event of a valued employee's untimely death.

How is it used?

You purchase a life insurance policy on the life of a key employee, naming your business as the beneficiary. If the key employee dies, the policy proceeds are paid to the business, generally tax-free, to help keep it going while you seek to fill the void left by the deceased employee.

What are the benefits?

The life insurance death benefit can help recoup the cost of losing and replacing a key employee if he/she dies, thereby minimizing the impact of lost revenue that may result. Also, while the employee is living, accumulated cash value can be accessed for a range of business cash flow needs*.

What are the different types of life insurance that can help you protect your business?

WHOLE LIFE

Whole life insurance provides protection for a lifetime. As long as the insurance remains in force, the death benefit will be paid. It offers guarantees that you can’t find in other forms of life insurance, including guaranteed premiums that will not increase, a guaranteed death benefit and guaranteed cash value growth.

TERM LIFE

Term insurance can be your gateway to permanent insurance. It provides the protection you need today, at a cost you can afford.

UNIVERSAL LIFE

Universal life insurance provides lifetime death benefit protection along with flexibility that gives you choices as your needs and finances change. It offers options such as coverage amounts that may be increased or decreased, and premiums that you can vary based on your finances.

Prefer to speak to someone about life insurance?

TALK TO A FINANCIAL PROFESSIONAL

*Distributions under your policy (including cash dividends, withdrawals and partial/full surrenders) are not subject to taxation up to the amount paid into the policy (your cost basis). If the policy is a Modified Endowment Contract, policy loans and/or distributions are taxable to the extent of the gain and are subject to a 10% tax penalty. Access to cash values through borrowing or partial surrenders can reduce the policy's cash value and death benefit, increase the chance the policy will lapse, and may result in a tax liability if the policy terminates before the death of the insured.

Guarantees are based upon the claims paying ability of the issuing company.

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