Speak with an experienced advisor!
541-400-9040
Key man life insurance is a form of term life insurance used to protect a business in the event that a person who is vital to the business were to pass away. There are a few different types of businesses where key man life insurance is a very good idea.
A family business is usually run by just a few people. This means that each person is vital to the running of the business. If one member of the management team were to pass away there would need to be money available so that another person can be trained or so that someone can be brought in to fill their place. In this instance key man life insurance is a perfect match. The business pays for the term life insurance and then receives the payout. The company takes the money and stays afloat until someone can pick up where the previous employee left off.
The other instance when a key man life insurance is a great idea is when you are part of a business partnership. Most times the term life insurance policy is set up so that one of the partners can purchase to company out right. This may seem strange but consider a business with two key people running the business. If one were to pass away would their spouse or children be able to fill the void of that person or would the other partner even want that to happen? What this term life insurance allows partners in this situation to do is take the lump sum of money and pay off the surviving spouse or family members. This is usually agreed upon in advance when the life insurance policy is set into effect.
By making an agreement like this both partners are assured to have a business that is viable after either of them were to pass away . Of course if both live into old age the agreement can be modified so that the life insurance policy is canceled and then either left alone or then reissued to the younger people who take over where the previous partners left off. This form of key man life insurance is also usually a term life insurance policy.
With any life insurance policy your best bet is to get a set of quotes. You can do this by filling out the form on the side of this page. Fill it out as a standard term life insurance policy and when one of our agents contacts you just let them know what you are trying to do. This is the fastest way to get your key man life insurance needs taken care of. If you have any questions or if there is any way we can serve you please let us know.