Key Person Insurance

Key person insurance is life insurance on a key person, usually the owner or a highly valuable employee on whom the continued successful operation of a business depends. The business entity is the beneficiary under the policy. If a key person dies, the company receives the insurance proceeds that can be used for expenses until a suitable replacement can be found "or the business is sold. Key person insurance usually consists of a term insurance policy. Determining the ideal amount of key person insurance is part of the due diligence process.

Business continuation or continuity insurance is a type of life and/or disability insurance that covers losses if a key executive, owner, or partner becomes disabled or dies. The insurance company provides funds that a business would require to minimize the disruption caused by the event and continue operations. Combined with a Shareholder's Agreement (Buy - Sell Agreement) business continuity insurance can help a business with multiple owners establish an orderly succession strategy.



Affordable Living Trusts
Avoid Probate Costs and Delays

Anyone who owns a home should transfer it into a living trust.
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