Key person strategies

Did you know if an insured employee or owner were to pass away or become disabled and unable to work, the benefits payable from a key person life or disability insurance plan could help you to:

  • Recruit, hire and train a replacement
  • Pay off debt and manage creditors
  • Ease lenders’ concerns about your company’s financial health
  • Reassure customers, employees and investors that your business will survive

Retirement strategies and how we can help!

  1. A key person, whether a business owner(s), key executives or key employees, protecting your business with a key person strategy is a important part to any business.There are also many different strategies when it comes to Key person protection;Key person insurance protection involves the use of life insurance to create immediate working capital for a business to meet immediate cash needs and to find a replacement in the event of the death of a business owner or key executive. The business owner(s) and/or other key executives spend considerable time and effort in acquiring the knowledge, experience, judgment, reputation, relationship and skills that make them valuable to the business. The death of such an individual results in the loss of a key member of the team and can have a severe financial impact.
  2. Key person protection against a critical illness is a major facture to consider, especially when it comes to the business owner(s) and key executives. In the event that a business owner(s) or key executive gets a critical illness, this can have a detrimental effect on the business. The relationships they have with clients, the knowledge of the business and the understanding of running the business can have severe financial consequences if they have to take time off for their illness. Protecting the business from the potential financial impact this can bring on, it is important to protect the key members of your team that the business needs.
  3. Have you ever thought of the impact to your business if one of your key executive(s) left for the competition or for another job? Loosing a Key member of your team to a scenario like these can have a large impact to the bottom line. A Key person strategy to protect your business but also give the key team member the incentive to stay is also a Key strategy to consider as a business owner(s). Being able to offer them an incentive that will cost the business a fraction of the cost while growing tax deferred and staying as cash available on your balance sheet. This is a win win win strategy.

Key person protection in any one or all forms is a Key strategy that every business owner should consider. Key person protection provides many potential benefits to a business, the business owner, the owner(s) family and key people in your corporation. It helps to ensure creditors and employees of the business that the business will continue notwithstanding the sickness or death of the key person. It also solidifies a Key member of your team from leaving for the competition or another job.