Key Person Coverage
Key person insurance covers an employee who is crucial to the success of the business. This insurance strategy helps protect a business from an economic loss when an important employee is not able to function within the business at a normal capacity. For many Small and Medium businesses, the key people are the owners and the insurance planning needs to take into consideration the risks they face. What Can Lions Assurance Financial Do for You? Lions Assurance Financial helps clients find the suitable solution of key person insurance planning. Then we advise our clients on what they can do for each step to get the best results. To best assist, we applied Four-step SIRE process to create value for you.
- Survey: We will begin process with a questionnaire to have a general understanding of your business and identify the unique composition of key employees. We clarify your business objectives and gain understanding of the unique current issues that need to be addressed.
- Insight: To have a deep insight of your specific business, we will incorporate industry research, determine product offerings available from many sources, create an assessment and evaluation about your company’s key person structural plan options.
- Recommendation: Then, we will come up with solutions for a key person insurance program that is tailored to your company. As an independent firm we can present multiple providers to create a plan that helps create value in attracting and retaining talent in your company.
- Execution: We will implement the strategy your company would like to execute on based on the options provided and budget available. We help achieve a better result with our professional experience, integration of technology, understanding of your industry, and staying attuned to the compliance and regulatory requirements.
- How to define a key person
- The importance to have this insurance
- Benefit of key person insurance
- If the key employee is an owner of the business, the policy can help fund a buy-out of his or her business interest if disability or death occurs.
- Coverage Process
- Identify key person
- Give employee notice of intension to buy the insurance
- Acquire the consent of key employee
- Insurance carrier pays the policy proceeds
- Review tax related factors