In today’s society in the working world, there are many people that contribute more to a business’ success than others. If one of your employees were to up and leave your company, are you going to be worried it might not recover from the loss? If you are, this employee would be considered a “key person,” and their is insurance that can deal with their loss when it occurs.
What Is A Key Employee? – These policies are usually intended for business owners only, but they might also be for the top salespeople, or anyone else deemed to be a “key” to the business’s success.
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.