The most valuable asset of any business is its key people.

Most successful businesses have one or more people whose unique talents make a significant contribution to the bottom line.

Who are these key people?

	You
	People with specialized technical talents
	People who have unique relationships with valued customers
	People who attract new business
	People responsible for major projects

In the event of death or extended illness of such a key person, your business could suffer from the loss of knowledge, expertise and management capability. Replacing such a valuable resource is often difficult and costly in terms of finding and training someone new, as well as meeting their income requirements.

Key person insurance is a life insurance policy maintained by the company on the life of an important partner or employee. It provides funds to partially offset the economic cost to the company of losing such an employee. It may also provide:

1. A stabilizing factor to keep the business running.
2. Reassurance to creditors to keep credit channels open.
3. A death benefit to the family of the deceased for a reasonable period of time to replace lost income.

How Does it work?

The individual employer or the company would be the owner and beneficiary of the policy. The key employee would be the life insured, but would receive no benefit from the existence of the policy. Death benefit proceeds would be received tax free by the employer or the company and would provide the liquidity needed to hire and train a new highly-skilled individual and provide cash flow through a period of sales declines.

Make key person insurance part of your business plan to secure the future of your business. Contact me today to get more information on this plan.