The Importance of Key Man Insurance For Business Owners And Entrepreneurs

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It’s 2018 and everyone wants to be their own boss. We have so many people that have great ideas and they want to bring them to life. With being a business owner or an entrepreneur, you and your business partners are very important to the business. If something were to happen to anyone of the key players of the company…what do you have in place? Do you have answers to any of these few questions?

  • Do you have something in place to pay for the training and possibly the salary for the next person that will fill that position?
  • Do you have something in place to keep the business going?
  • Do you have something in place to maybe buy out the spouse of the partner that died?

When a business is started the owners/partners will place a Key Man Insurance policy on each owner/partner. Key Man Insurance also known as Key Person Life Insurance is a life insurance policy on an owner or founder of the company or even a key employee of the company. These people are extremely important to the company and with their absence the company normally sinks. Key Person Insurance is to help the company survive losing a key person who makes the company work. This is how it works.

A company buys a life insurance policy on a key person (Owner/ partners/ or any key employee). They pay the premiums and is the beneficiary of the policy. If the individual that is coined the Key Person dies the company receives the insurance payoff. This kind of policy is different from a normal life insurance policy that a person would have. A Normal policy the individual would have it on themselves and pay for it, if anything happens to them the payout would go to their family. With Key man insurance the company would be the owner of the policy, they would pay for it, and receive the payout.

With a key man policy, you would want to pick an amount that would cover the persons worth/percentage of the company that they own. Picking that amount may seem kind of challenging and you may think it can get pricey. This is where udecideit.com comes in and helps. At udecideit.com you will be able to let the agent know how much you can afford to pay per month. The agent will do everything in his/her power to find you the right coverage at the price that you want.

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