Key Person Life Insurance
The unexpected death of an owner, business partner, or key employee can have a devastating effect on a company. Replacing critical personnel could potentially cost significant time and money.
Potential Advantages of Key Person Life Insurance
Key-person life insurance may also be used as the funding vehicle for other sales concepts. It can be used to fund both an entity purchase buy-sell arrangement and executive benefits designed to retain and motivate key employees. An example would be endorsement split-dollar plans, non-qualified deferred compensation plans, and/or death benefit only (DBO) plans.