Key Person or Key Man Insurance

Key Person Disruptions to your Business 

Business owners, key executives, and important employees invest significant time and effort in acquiring the knowledge, experience, skills, reputation, and relationships that make them invaluable to the business. However, if one of these key individuals were to pass away, become disabled, or fall critically ill, the business would lose a crucial member of its team, leading to severe financial consequences.

During the disruption that follows the death, disability, or critical illness of a key player several things can happen within a business:

  • The business will suffer from the loss of knowledge, expertise, and management capability.
  • Lenders may cut back on credit.
  • Creditors may press for immediate payment of outstanding debt.
  • Debtors may delay making payments.
  • Employees and customers may lose confidence in the business.
  • Competitors may take advantage of the unfortunate business situation.

Unfortunately, the process of finding a Key Person replacement after losses such as death, disability, or critical illness, can cause business delays, further disruptions, and reduced efficiency, ultimately weakening the financial stability of the company. However, if the business has implemented a well-thought-out Key Person Insurance Plan prior to experiencing such a loss, the impact of this situation can be significantly reduced. 

INTRODUCING KEY PERSON INSURANCE

The Solution to Your Business Disruptions

Fortunately, the possibility of the death, disability or critical illness of a key person is a contingency or risk that can be insured!

A Key Person or Key Man succession business plan should include the purchase of Insurance policies for the death, disability, or critical illness of a key player to ensure that there will be immediate cash to cover the business’s working capital needs as well as to find and train a suitable replacement for the person lost. The value of these benefits to the business should far exceed the cost of the insurance!

Don’t Get Caught Off Guard

Ensure Expertise & Management Capabilities

Don’t take it on alone - trust Health Risk Services experts to recommend, implement, and manage your various types of coverage.

Liberate
Your Credit

Feeling like your credit is getting caught up? Liberate your assets with key person insurance

Streamline
Payments

Insurance doesn’t have to be complicated - streamline payments by working with Health Risk

Showcase Confidence in Your Business

Nothing shows confidence like covering your finances, investments, and assets through the right insurance

Guard Against Creditors

Never get caught off guard and ensure that you’re secured against creditors.

Adopt Reasonable Timelines

No need to feel pressured to implement all coverage at once - with the right plan, you can adopt reasonable timelines to implement the right coverage as it suits your timelines.

Explore Insurance Options

A key person in your company or organization plays a vitally crucial role in the success of your operations. For example, you may employ a controller, chef, engineer, architect, or other type of key responsibility or role. But have you considered the potential impact on your company if you were suddenly absent due to a critical illness or premature death? Without your expertise, your business could face substantial financial losses and a decline in customer trust. This is where Health Risk’s key person insurance comes in. Our personal health insurance and corporate business insurance solutions provide peace of mind, allowing you to focus on recovery knowing that your financial stability is protected.

Secure Your Company’s Financial Safety

As a crucial figure in your company, your role is vital to the success of your organization. However, in the event of the death, disability, or critical illness of a key player, several negative consequences can occur. For example, the business will experience a loss of valuable knowledge, expertise, and management capabilities, or lenders may reduce the amount of credit they provide. Creditors may demand immediate payment of outstanding debt, and debtors may delay making payments. Employees and customers may lose confidence in the business, competitors may seize the opportunity to exploit the unfortunate circumstances of the business.
Don't Get Caught Off Guard With No Protection!
Know Your Key Person Insurance Options

Our experienced consultants can guide you through the process of selecting and implementing the right key person insurance policy for your business. Schedule a consultation with Health Risk today and protect your business from unforeseen circumstances.

FAQs

The main purpose of key person insurance is to protect an organization again financial loss and burden in the event that a key employee is disabled, is diagnosed with a critical medical condition, or dies. If the company decides to use the funds for the employee as opposed to the company, the proceeds can also aid and support the employee during recovery.

There are 3 main types of Key Person Insurance Coverage – Life Insurance, Disability Insurance and Critical Illness Insurance.  Please note that each of these products can be designed to meet the specific needs of each unique organization.

No. Key Person insurance can be purchased to protect either the Company or the Employee or both.

Stay tuned for the introduction of our TOTALHealth™ program! To be launched in 2023.