Key Person Life Insurance

Most businesses have certain employees or partners who are absolutely critical to the success of the company. Without their physical presence and active participation in the operation of the firm net profits would be reduced... sometimes drastically.

A smart way to protect the potential loss of this key person, should unexpected death occur, is for the company to own life insurance on that individual. The best type of policy would typically be one that produces early high cash value. It is common to have at least 98 percent of the premium immediately credited to the company's liquid cash asset account resulting in a net cost which is less than a term policy.