Key Man Insurance For Technology Companies

The cost of replacing a key person can be enormous, so purchasing key-man insurance is essential. Some positions will attract more talent than others, and it is important to get enough coverage to keep running. In addition to providing a financial cushion, companies can claim the premium payments as a tax deduction. These insurance policies are a great way to safeguard your company against unexpected expenses. However, you should consider whether you need key-man insurance for yourself.

A key man insurance policy can be structured in the same way as any other life insurance policy. Whole and term life insurance are the most common types, and the most affordable and simple to get. The policyholder pays a fixed amount each year or monthly, and the term can range from 10 to 30 years. This type of policy is ideal for people who are self-employed or have a high salary. The cost of key-man insurance is not very high compared to other types of business insurance.

A key man insurance policy can cover a variety of risks. In addition to a death benefit, it can also cover a business’s liabilities, including lawsuits. In the event that a key-man is incapacitated for any reason, a life insurance policy will pay out the insured person’s death benefits. This coverage is also useful for avoiding the expense of a replacement key person.