1st Quality Insurance

Key Personal Life Insurance

Key Personal (Man) Life Insurance

Key Man Life Insurance is a type of business insurance used to protect an employer or a lender against the financial loss that could result from the premature death of the most essential employees of a company. The Key Man or Person can be the owner, key sales person, an engineer, or anyone who is vital to the organizations existence.

The death of a key person can have a devastating effect on a business, especially if the employee controlled substantial accounts and profits, or had established relationships with external sources which are often irreplaceable.​

The insurance proceeds from a key man life insurance policy can fill several needs:

  • Key Man Life Insurance can be used to help find and train a new employee to replace the deceased.
  • Key Man Life Insurance can provide the funds to purchase ownership belonging to the deceased owner or key person.
  • Key Man Life Insurance can be used to fulfill any contractual agreement to continue to provide the employee’s salary to his or her family for a certain number of months.

Life insurance is present in almost every estate plan and serves as a source of support, education-expense coverage and liquidity to pay death taxes, pay expenses, fund business buy-sell agreements and sometimes to fund retirement plans.