Protecting Your Employees with Key Person Life Insurance
As a business owner, you know that your employees are an important asset of your business. Each business has individuals with specialized skills, knowledge, and valuable customer relationships that are critical to its success. If your business relies heavily on key employees, it may suffer tremendously without those individuals and it may be a good idea to think about investing in key person life insurance.
What Impact Does Losing a Key Employee Have on Your Business?
When you lose a key person within your business, you may have to take on additional duties that could change your lifestyle and how the business operates on a daily basis.
The loss of a key employee may also result in:
- Decrease in sales and profits
- Loss of customers
- Costs to recruit, hire, and train a replacement
- Reduced employee morale
- Loss of confidence of creditors and suppliers
- Damaged or weakened relationships
- Costly mistakes due to inexperience
What is Key Person Life Insurance?
To help protect your business from this potential loss, you can utilize key person life insurance. Key person coverage is a life insurance policy that can help protect the business against the untimely death of a key employee or owner by providing the business with cash at a time it is needed most.
Find Out How Federated Insurance® Can Help
This content may be accessed in the following additional options:
- Protecting Your Employees with Key Person Life Insurance PDF
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|This article is for general information and risk prevention only and should not be considered another other offer of insurance or legal, financial, tax, or other expert advice. The recommendations herein may help reduce, but are not guaranteed to eliminate, any or all losses. The information herein may be subject to, and is not a substitute for, any laws or regulations that may apply. This information is current as of its publication date and is subject to change. Some of the services referenced herein are provided by third parties wholly independent of Federated. Federated provides access to these services with the understanding that neither Federated nor its employees provide legal or other expert advice. All products and services not available in all states. Qualified counsel should be sought with questions specific to your circumstances. All rights reserved.
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