Canyon Creek Allstate Insurance
Do You Own A Business? Do You Need Key Person Life Insurance?
I
f you have a family, you probably know life insurance can help protect your loved ones financially if you pass away. But do you have life insurance to help protect your business? Yes, there is such a thing: It’s known as key person life insurance, key man, or business life insurance.
How Much Coverage Should I Buy?
There’s no set formula for deciding the monetary value of your key person insurance. You may want to start by considering the financial effects a key employee’s death would have on your company. For instance, if you’re a sole proprietor buying key person insurance on yourself, you may want enough coverage to help your heirs close your business and pay off any company debts. If you own What Is Key Person Insurance? Key person insurance is a type of life insurance policy that provides a larger company and are insuring a key employee, you may need a death benefit to a business if its owner or another significant enough coverage to replace that person’s sales income, for example, or to provide a financial cushion while you search for the employee’s employee passes away. Key person insurance may make we sensecan in many Together, make replacement. a difference. circumstances:
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• If the business’ reputation and financial viability are critically linked to the key employee’s name, reputation or unique skills, and the key employee’s death could end the business. • If the death of a key employee (like a top salesperson) could quickly threaten the company financially. • If a financial institution or other creditor needs collateral for a business loan and requires the option of putting a lien on a key person policy. • If the business is a partnership and each partner wants to be able to buy out the other’s shares in case of an untimely death.
Who Owns The Key Person Policy And Who Benefits? How your policy is structured may depend on your company’s legal structure. Typically, the company pays premiums for the key person policy, and also owns it and is the beneficiary. The key employee must provide consent, in writing, to your company owning the policy. To discuss in more detail, call my office at 972-810-4149
Do you have a New Roof? GET A QUOTE AND I’LL DONATE $20 As a local Allstate Agent, I’m proud to support the Dallas Street Dog Advocates. And now it’s easy for you to help too. Call or stop by for a free insurance quote and I’ll donate $20* to the Dallas Street Dog Advocates.
Wilson Allen 972-810-4149
II Creeks Plaza 32Canyon Creek wilsonallen@allstate.com
www.CanyonCreekLifeMedia.com
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