Why is key person insurance important for your business?
Does your business include someone whose contribution is vital to the survival of your company? If yes, then key person insurance should be a part of your business continuity and succession plan—especially if you're a small business owner.
If a key member of your team passes away or becomes disabled, your bottom line may suffer in the short-term, and over the long-term, you may have to find a replacement or even shut down your business. However, with the benefits payable from a key person life or disability insurance plan, you could:
- Recruit, hire and train a replacement
- Pay off debt and deal with creditors
- Alleviate lenders' concerns about your company's financial health
- Reassure customers, employees and investors that the business will continue operating
What's more, if you and your family rely on your business as a primary source of income, key person insurance can help ensure that the business will continue to provide a secure financial future.