No one wants to consider the death of a colleague. But if such a tragedy could lead to your company’s demise, then key person insurance is a worthwhile precaution.
What is Key Man Insurance?
Key man insurance is an insurance policy taken out and owned by a business to compensate that business for any losses financially that would occur from the death or extended incapacity of an important or “key” member of the business whether it be a partner, executive, officer or any member of the business whose loss may cause financial stress.
How does it Work?
Your business would pay annual premiums and be the beneficiary under the policy. If a key person unexpectedly dies, the company would receive the insurance pay off.
Not insured by the FDIC or any other federal government agency or the bank. Not a deposit of or guaranteed by the bank. Subject to investment risk including possible loss of value. The bank may not condition an extension of credit on your purchase of an insurance product or annuity from the bank or any of its affiliates.