Key person
Protection for the indisPensable
Every employee contributes to a small business's success, but some are irreplaceable. To ensure business continuity, consider key person insurance covering valuable employees, with an option for disability coverage. This policy safeguards the business in the event of a crucial employee's death or disability.
Key person insurance offers vital financial support when your business faces the loss of a crucial employee. Ford Insurance Agency assists in identifying your business's coverage requirements and exploring protective options.
what makes a person “Key”?
Key person insurance targets vital employees, often the owner or specialized contributors crucial to the business's success. This coverage is essential for those challenging to replace, protecting against potential financial setbacks if a key person dies. Under this policy, the business owns, pays premiums, and is the beneficiary, providing a death benefit to mitigate revenue loss. Sole proprietors may use key person insurance to secure family members inheriting the business. Note that some lenders may require businesses to obtain key person insurance for financing approval.
how much insurance do you need?
Determining key person insurance coverage involves considering replacement costs and the individual's contribution to the company's revenue. Typically, companies multiply the key person's salary by a factor of five to seven. Choose between term or permanent insurance based on your business needs. A term policy provides a death benefit with level premiums for a specified period, while a permanent policy includes a cash value fund in addition to the death benefit. Our specialty team is here and ready to help navigate you through the complexities of key person insurance.
It’s time to meet Madison!
Madison Ford leads our life insurance department. He’d be happy to help! You can call him directly at (231) 492-0824 or email him at mford@fordinsurance.net.
CALL: (231) 492-0824
EMAIL: mford@fordinsurance.net
Or if you’d prefer, click below to fill out a form and he will get back to you.