Key Man Insurance

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Key Man Insurance

A life insurance policy that a company purchases on one or more of its most important employees. The company pays the premiums and is the beneficiary. If the employee dies unexpectedly the company receives the benefit to offset the financial loss from the employee's demise. Partnerships often have key man insurance on each of the partners, while publicly-traded companies carry policies for major executives and managers. Companies use key man benefits to buy back stock in the company from the decedent's estate. It is also common to use the benefit to offset lost production or to pay a headhunter to find a replacement employee.
References in periodicals archive ?
Without certain kinds of business life insurance like key person coverage or an insured buy-sell agreement on the partner who died, our fictitious business may have serious problems and be forced to liquidate or even close shop.
When asked about premium amounts and what costs and range policies are associated with business life insurance coverage, Betti explains it depends on the age, health, and level of coverage desired.
The one extra dimension that is unique to Alaska is the mosaic of industries and locations that have used business life insurance options.
CPAs should emphasize this important goal as they help clients review their disability protection, business life insurance, 401(k) and other retirement plans, as well as their succession plan.
currently offers life, credit life and business life insurance in addition to property and casualty.
Universal Underwriters offers a wide range of commercial insurance-related products and services including Property & Casualty Insurance, Workers Compensation, Risk Management Services, Business Life Insurance, Vehicle Service Contracts, Credit Life and Disability Insurance, GAP Insurance, Subprime Financing Services, and Income Development Programs.
The principals of PMI have an extensive background in the marketing, wholesaling and financing of business life insurance and other related products.
He is also the primary contact for customers interested in more complex investment products and services, such as individual portfolio management, trust, business life insurance and retirement plans.
Founded in 1967, Tribus serves more than 7,000 clients with a wide range of services, including voluntary and flexible benefits, 401(k)/profit-sharing, property & casualty insurance, payroll and estate and business life insurance planning.

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