Every business has key employees critical to the success and profitability of the business. What would happen to your business if one of your key employees died? Key employee insurance protects your business from the financial impact of losing a crucial employee. Key employee insurance helps you and your business by providing funds when a valuable employee dies. The business pays all the premiums and is the beneficiary of the life insurance policy on the key employee's life. If the employee dies, the proceeds are paid to the business to use as it wishes. The benefit, which is tied to the value you've placed on your employee's impact to the bottom line, can be used to hire and train a replacement or to pay other business expenses.

Benefits of Key Employee Insurance

• The company receives needed funds which help meet financial obligations and train a replacement.
• While the employee is alive, the cash value of the policy is available for the business to use in a variety of ways.
• Creditors may be more apt to extend credit if the business has protected itself against the loss of a key employee.
• Death proceeds are received income tax-free.