FINANCIAL PLANNING - Business Planning
|Buy/Sell (Shareholder Agreement)|
|Executive Living Benefit|
- Businesses most valuable asset most often is their people.
- A business often depend on one, two or more people for their success. This is the person that
is considered to be a “keyman”
- The loss of a “keyman” through death, disability or illness can result in business failure
or in the least, cause apprehension and financial strain on the business , often for a long periods of time.
- Insuring against such a loss is no different than insuring any other physical business asset such as
a building or machinery. .
Corporate-owned life insurance, disability coverage, or critical illness insurance will not replace a key person.
However, it can provide the financial resources needed to either train or recruit a replacement.
In the case of illness or disability it can provide for the financial resources to maintain the key
person's wages while paying for a replacement without exhausting the company's resources.