The Value of Key Employee Insurance
Can your small business risk not having it?
Provided by Vast Holdings Group, LLC
What kind of financial loss would your business face without its key employees? They are worth more than their salaries – their performance, professionalism, and character make your company what it is and provide the stability and predictability you need to realize a profit.
Because of this reality, wise business owners may take a look at key employee insurance.
Aren’t the premiums for key employee insurance sizable? Not necessarily. In fact, they may seem profoundly insignificant compared to the financial hit your company could take without a key worker.
If you lose an executive, a manager, or even a salesperson who has built core relationships for your business, you’re looking at the possibility of decreased revenue for the company, the cost of recruiting and training a replacement, potentially expensive snafus if that replacement screws up, and even client/customer attrition (to some of your customers or clients, things may “never be the same”).1
The cost of coverage depends on several factors: the amount and type of coverage, the nature of your business, the medical histories and ages of the insured parties, and the estimated expenses and profit loss that could occur as a result of their death and disability.1
What are the potential advantages of having this insurance in place? First of all, there are financial benefits available to compensate your firm for the income loss related to the loss or disability of the worker. The presence of these benefits may reassure creditors, lenders, and vendors if a seemingly essential employee dies. If your business is incorporated, the insurance benefits can help alleviate the concerns of investors and shareholders.1
Some tax factors to note. Doing business without key employee insurance is a risk – a financial risk that your company could do without. To address that risk, look at some of the coverage available; relatively speaking, it may prove a bargain.
Vast Holdings Group LLC may be reached at www.VastHoldingsGoup.com or 888-808-8278
Vast Holdings Group, LLC does not solicit securities though has strategic alliances with companies that do.
1 – entrepreneur.com/encyclopedia/key-person-insurance [5/30/19]