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Do all businesses need key man insurance?

Updated: Nov 9, 2021


 

Since the beginning of time, businesses and business owners have been seeking to shield themselves from unnecessary risk. One risk that even a seasoned business owner might not have considered, is the risk of an important employee’s untimely passing.


Key-man-insurance-employee

This might be a partner, vice president, or even a manager who’s shoes could not easily be filled. Of course, this would have an effect on company morale, especially on those employees who were close to them. There passing very well might also have a direct effect on the company’s ability to make money.


With their health and safety being so closely tied to the success of the business, their untimely passing could have major consequences on the business’ success and even a business owners personal income, if it’s closely tied to the company’s profits.


So does every business need Key Man Insurance and more importantly, does yours?

There is rarely an absolute rule when it comes to topics like this. So no, every business does not need Key Man Insurance, but is your business one of the exceptions?



You should start by asking yourself a few questions


Does your business significantly depend on this key employee or key group of employees? Does the Key employee or the group of key employees have a significant effect on the income that the business generates? If your answer to both questions was “yes” then you should seriously consider speaking with a financial advisor about Key Man Insurance.



How much does Key Man Insurance cost?


The cost of these plans varies widely depending on the level of protection desired. Begin with a conversation. Speak with a financial advisor who has experience with Key Man Insurance and experience working with companies.


If you think Key Man Insurance might be necessary for your business, you should first speak with a financial professional about whether or not it’s essential. It’s important that the professional has experience helping companies find the right fit for them.


A 15 minute conversation could help keep an incredibly serious personal issue from also becoming a serious problem for your business down the road.





To schedule a time to speak with Michael Romanello, a financial advisor with over 18 years of experience click or call 440-871-3067.

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