What is Key Man Insurance?

Key man insurance is a type of business protection insurance that provides financial support to a business in the event of the death or serious illness of a key employee. Key employees are those who are crucial to the success of a business and whose absence could have a significant impact on the business's financial stability.

Key man insurance can help cover the costs of recruiting and training a replacement employee, as well as provide financial support to the business during a period of transition. The policyholder pays regular premiums to an insurance company, and in exchange, the insurance company promises to pay out a lump sum if the key employee passes away or is diagnosed with a covered condition.

If you own a business and rely on the contributions of key employees, it's important to consider the potential impact of their absence and to take steps to protect your business. Working with a qualified insurance agent or financial advisor can help you determine whether key man insurance is a good fit for your business.

If you're interested in learning more about key man insurance, contact Affinity Legacy Planning for help or to discuss your options.