Life insurance Key person life insurance policy

[Phabbyfundz]

This might sound strange or new to some people or individuals, the loss of a key person might be a major blow to a small business if that person is the founder of the business or the key contact for customers and suppliers and management of the business. Loss of the key person may also make the running of the business less efficient and result in a loss of capital.
Losses caused by the death of a key employee are insurable. Such policies compensates the business against sufficient losses that result the person death or disability. The amount and cost of insurance needed for a particular business depends on the situation and the age, health and role of the key employee. Key employee life insurance pays a death benefit to the company when the key employee dies.

 

[btaliat]

Thanks for this informative and educative post. Though this is the first time I am hearing this kind of life but not one can under estimate the importance of this type of insurance because it ensures the continuity of the business. But what I don't know is that is it the company that will be paying the premium or the key player in the company?

 

[Chibson]

Of course there are some businesses that have come but because they lost the key person in that business. The person may not even be the highest financier of the business but they kind of knowledge and ideas he brings makes a business to move and grow rapidly and steadily. I think insurance companies can come into play and help a great deal in such a scenario.

 

[Wisdom01]

Such is possible , because if the company actually values the person more so placing a cover to recieve benefit could actually happened between the company and the insurance company , but if it's the company that insure , they would be the one to be paying the premium and not the said person

 

[Mandy96]

If I am going to be honest, this is definitely new to me. I know about life insurance but the word “key” attached to it made it look strange to me. Well I really can’t be blamed because I don’t know much about it generally. I appreciate the opportunity to know about this

 

[btaliat]

Such is possible , because if the company actually values the person more so placing a cover to recieve benefit could actually happened between the company and the insurance company , but if it's the company that insure , they would be the one to be paying the premium and not the said person

I think this kind of insurance policy though will allow the continuation of the business can also cause bad blood among the top players of the company. Let us imagine somone is the key player and he is under this mind of insurance policy. Who will be paying the premium on his behalf, is it the company or himself?

 

[Wisdom01]

I think this kind of insurance policy though will allow the continuation of the business can also cause bad blood among the top players of the company. Let us imagine somone is the key player and he is under this mind of insurance policy. Who will be paying the premium on his behalf, is it the company or himself?

If the person is very important and they can't afford to lose him , I don't think it would cause any bad blood Among them , because they would feel that without that person the company won't make any gain's and the top players would be broke ,so the company would be the one to pay and cover the risk