Key Person Insurance
Some business partners and employees may contribute an essential skill, service, or set of expertise to the daily operations or technology behind your business, without which your business would not be as profitable or influential. You need to protect your business from the negative effects of the sudden death or disablement of the key person, ensuring that your business’s profitability will be impacted as minimally as possible, if at all.
Should your key person die or become too disabled to continue to contribute to your business success, you may struggle to replace their knowledge, skill or expertise. And if you were to find a suitable replacement, their compensation may come at a steep cost, especially if you need to lure their loyalty away from a market competitor. If you were not able to find a suitable replacement, you’d need to up-skill an existing employee, which will also cost money, time, and ultimately profitability.
Key Person Insurance is about investing while your key people are still in the position to make your business profitable, so that upon their demise or disablement, you have enough capital to tide over the business until their shoes can be filled and business can resume; or to wind up the business efficiently (which can happen if replacement expertise and skills cannot be found).
As Key Person Insurance is, effectively, Life Insurance, SA Financial Planners can assist you in establishing this investment to protect your business interests. Contact us for more information and advice.