Businesses and risks go hand in hand:
There is a common phrase that says, “Fortune favors the brave.”Businesses, the world over can thrive only if they live up to the risk associated with it. Who is going to let the other person earn in peace unless the other person is ready to risk his most in order to be a successful entrepreneur?
Prudence is protection from eventualities:
Why do we need insurance? If this question is on your mind, think again. Bigger businesses everywhere pay millions of dollars in premiums in order to insure their interests in the business and to insure all their key people in the business. If we are to think that we had a head start in our business and come what may our businesses are too firm and on solid grounding to be not affected by any eventualities whatsoever, there can be nothing more
https://www.mykeymaninsurance.com/ utopian than this thought! Because, it has been seen not once but many times that the strongest and the mightiest businesses can tumble down like a castle made of sand at the slightest wind blowing in the adverse direction and affecting them.
Key Man insurance policy
In every business, there are certain personals that are in more ways than one indispensable to the company and its bottom line. These employees may be contributing in whatever department but their services to the business is not replaceable by other employees. These are the ones that are called as the key men of the business.
Not to be confused with a standard life insurance policy:
The KeyMan insurance need not be confused with the life insurance policy. They may both lap over each other but they are two different policies used for covering two different aspects.While a standard life insurance policy is used to cover the person who is the breadwinner of the family and the beneficiaries of the policy will be his dependents and immediate family members, the owner and the beneficiary of the KeyMan insurance policy is the business itself. The employee or his dependents cannot have any personal claim on the KeyMan insurance policy.The policy is to be used by the business in case of any eventuality like the death of the key person or the permanent physical disability of the person or his long absence from the affairs of the business. It gives sufficient cover to the business till they are able to hire that key person’s replacement.
How to determine a key person in the business?
A key person is one who is completely indispensable to the affairs of the company. He is also the one in whose absence the finances of the company can go awry. The loss of such a person to the institution can be humongous and the company is sufficiently covered till they find a replacement.
How much insurance?
The amount for the key person’s insurance can vary from person to person and will depend on the business and the reason why the company is insuring the key person in the first place.
Ask for quotes
There is no monopoly in this field and that spells good news for the policy holder as he has a wide choice for opting of the key man policies. There are insurance companies competing to offer their best rates for businesses who want to insure their key people. Therefore, the first step in insuring the key people in the business should be to explore your choice and ask for quotes from various agencies before zeroing on the insurance agency which matches the company’s needs and criterion.
Buy pocket friendly policies
It is a given that you need to buy pocket friendly insurance policies as in the long run they not only provide the essential cover but also do not strain the company’s finances too much. In case of any eventuality in the form of the death of the key person or the permanent physical disability of such person, the company is nicely covered to absorb such a trauma and to continue doing the business as it was doing before the calamity struck.
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