While most people understand the need for a spouse to receive funds in the event of the death of the
other spouse, most do not realize a business can suffer if an owner or key employee dies prematurely.
Many small business that depend on a key employee who dies, simply close their doors. However, it is
possible for a business to purchase business life coverage on their key employees for this situation.
Employees add considerable value to every business. By making the right moves, you’ve put people into
positions that support your business goals and found people who consistently make everything run
smoothly – be that the irreplaceable office manager or the always top-performing salesperson. What
would happen if you unexpectedly lost a key employee? Could your business suffer a significant
In addition, many businesses start small and sometimes grow to the point where it would be difficult to
buy a partner out in the event of his/her death. In this case, a buy-sell agreement is used to detail what
should be done in this event, and the needed cash for the buyout is provided with life insurance. There
are many ways to design a buy-sell agreement. Call us to discuss the options and to ensure that the
business you have built can survive the death of a key person or partner.
“Business Life insurance (Key person) provides liquid cash to pay off heirs in the event of premature death of an owner or key person in the firm.”