A Few Ways Key Man Life Insurance Protect Your Business Can

Key Man life insurance or Employee insurance provides a substitute replacement income to the businesses that would be lost after the death of insured employees. It doesn’t only relate to the death benefits but the benefits are also payable when the insured person is unable to continue work or expectedly quits.

Here is how key man insurance policy works:

Life insurances are purchased on the key employees. You as the beneficiary of the life insurance apply for this and own the policy. In case, if the key employee, who is ensured, dies prematurely, you are paid out by the insurance company. It could also be used to buy the interests and shares of the key employee of the company. The premiums of the policy will be based on a number of factors, counting the age of the key employee, health history and physical condition. And the amount of coverage will also affect the premiums.

Apart from the employees, key man insurance also provides coverage to the creditors, stockholders and lenders. The decision of which employee should be equipped with key man insurance policy will solely be taken by the company depending on the ease of replacing particular employees. For further details, please contact at www.dynamiclifestylesolutions.com or call us at 774.571.7985.