Broker Check

Key Man Insurance

<p class="MsoNormal" style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto; line-height: normal;"><strong><span style="font-size: 20.0pt; mso-bidi-font-size: 11.0pt; font-family: 'Times New Roman',serif; mso-fareast-font-family: 'Times New Roman';">Advantages of Key Man Insurance</span></strong>

Advantages of Key Man Insurance

Are you a business owner who would suffer financial loss from the death or extended incapacity of an important member of your business?

Have you planned for business succession or business protection?


There are many different insurance policies that can meet the needs of protecting your key employees.

Set an Appointment

Protect your Investment!

Find out why the combination of key man insurance and buy sell agreements can protect the interests of everyone involved.   

Protect Your Investment

 When you start a small business, it's important to have plans in place to protect your investment, your business partners, and the best interests of the family members of everyone who has an ownership interest in the company.

That's why business insurance planning that includes a sufficient amount of key man insurance coverage is so important.

No one wants or expects something bad to happen to one of their business partners, but the reality is that none of us knows what the future holds.

When you have key man insurance and buy-sell agreements in place, you'll be financially prepared to allow your business the opportunity to continue to move forward, even in the event of a worst case scenario.

  • About Key Person Insurance

Including key person coverage in your business insurance planning involves purchasing a life insurance policy on each of the partners in your small business. The policy should name the business as the beneficiary. This type of coverage provides funding needed to keep the business operating if one of the partners is no longer living.

No matter how small or large your business is, losing one of the partners could be financially devastating.

For example, the surviving partners would likely have to hire someone to perform the tasks the deceased partner was responsible for.

Proceeds from the policy could be used to cover the recruiting, training, and payroll expenses for a period of time. If you have a buy-sell agreement in place, the money can also be used to purchase the deceased partners ownership interests in the company.


Set an Appointment
To Attract the Best, You Need to Offer the Best

To Attract the Best, You Need to Offer the Best

Attract and Retain Employees by Offering Better Benefits

Key employees are the lifeblood of your company and it is crucial to be more attractive than your competitors.

Benefits are necessary to recruit and retain your best employees, but most companies offer essentially the same benefits as everyone else. 

How do you offer more and set yourself apart?

Premium Financing is a unique strategy that allows you to achieve a competitive advantage by offering the best benefits, provide more protection, and potentially save more for employees’ retirement. 

Simply put, the Premium Financing Strategy provides you with the extra funding to set yourself apart without having to increase your budget.

 More Cost Effective than Traditional Plans

The real reason businesses are not offering additional benefits to their key employees is cost.  The Premium Financing Strategy uses leverage to help cover the costs of the additional benefits needed to attract top talent.  

A unique feature of Premium Financing is that there are no loan qualifications or loan documents signed by the employer or employee. The contributions made to the strategy act to fully secure the loan.  

Utilizing Premium Financing allows companies to spend less on something that would otherwise be a substantial expense.  This will ultimately improve your cash flow and decrease costs while offering the differentiation needed to compete for the best employees.

In addition, due to the high cost of benefits, businesses also find it difficult to provide adequate coverage for other business liabilities such as Key Person, Buy-Sell Agreements, Succession Planning, etc. These events can typically be funded at half the cost of traditional options with Premium Financing.

A Better Way to Fund Contingent Business Liabilities (Key Person, Buy-Sell Agreements, Succession Planning, etc.)

Key executives leave for a variety of reasons which can leave a business scrambling to cover their loss. They can become disabled, develop a chronic illness, retire, pass away, or simply leave. Most companies use their cash to grow their business and not to fund contingent business liabilities. 

Premium Financing helps provide the funding needed to protect your business in a wider variety of circumstances.

 A Better Way to Informally Fund Deferred Compensation

Premium Financing is a superior way to informally fund Non-Qualified Deferred Compensation. By financing a life insurance policy as opposed to traditional investment alternatives, you get the added advantage of additional cash through the use of leverage, potential tax-deferred growth, protection benefits should something happen to the employee all without downside market risk.

Set an Appointment