Key Man Life & Estate Planning Solutions
What is Key Person Life Insurance?
This coverage is designed to protect your business upon the loss of a key employee. The tax-free proceeds from this policy can be used to find, hire and train a replacement, compensate for lost business during the transition, or finance any number of timely business transactions.
When is Key Person Life Insurance needed?
Key Person Life Insurance is often required in order to obtain funding. Venture Capitalists will want an assurance that they can recoup their investment if something happens to the founder of the company, or to the CTO.
Why do I need Key Person Life Insurance?
Key Person Life Insurance is a way for investors to protect their investment. Usually, one or two key people represent the technical genius or creative talent in a new venture. The sudden death of such a person can have a disastrous financial affect on the company. It can weaken the company’s credit rating, or require the sale of a portion or all of the business if there is no way to cover costs while a replacement person is found.
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