Key Employee Insurance

Retain top talent with executive bonus plans that align with your business growth goals. We create rewarding incentives to keep your high performers motivated. Invest in your team with compensation that benefits everyone.

Benefits of Key Employee Insurance

Protect Business Continuity

Key employee insurance ensures the business can continue operating smoothly if a critical team member is lost due to death or disability.

Offset Financial Losses

The policy provides funds to cover revenue loss, operational disruptions, or costs associated with finding and training a replacement..

Preserve Business Value

Minimize the financial impact of losing a key employee, maintaining the company’s valuation and market position

Provide Recruitment and Transition Support

The payout can be used to recruit, hire, and train a suitable replacement without financial strain.

Ensure Investor Confidence

Investors feel more secure knowing the company has a safety net to handle the loss of pivotal employees.

Enhance Succession Planning

Key employee insurance complements succession plans, providing financial support during leadership transitions.

questions and answers

What is key employee insurance?

Key employee insurance is a life or disability insurance policy taken out by a business on its most valuable employees. The business is the policy beneficiary and receives a payout if the insured employee passes away or becomes unable to work.

Who qualifies as a key employee?

A key employee is someone whose skills, knowledge, or leadership are critical to the company’s success, such as executives, top salespeople, or specialists with unique expertise.

How does key employee insurance benefit the business?

It provides financial support to offset revenue loss, hire and train a replacement, or cover operational expenses, ensuring the business remains stable during a challenging time.

Is key employee insurance tax-deductible?

Typically, premiums paid for key employee insurance are not tax-deductible. However, the death benefit received by the business is generally tax-free, offering significant financial relief.

How much coverage is needed for key employee insurance?

The coverage amount should reflect the potential financial impact of losing the key employee, including revenue they generate, recruitment and training costs, and other operational expenses. A financial advisor can help determine the appropriate coverage.