How Does It Work? – With key employee insurance, the company pays premiums for an employee, because it would experience a severe setback if something happened to that individual. With these benefits offered it can help the company through the tough times of losing this employee until they can find its footing again.
Depending on the type of policy purchased, key person insurance may be considered as an employee benefit. This can build up cash value during an employee’s time at the company. The company might have to agree to give a percentage of that cash value to the employee on retirement, which gives the employee a reason to keep working with them.
With this type of insurance you must pay close attention to details. Talk with your insurance agent at Brazelton Insurance Group, they can tell you more about how key employee insurance works and advise you which policy will make sense for you and your business.