Key Person Assurance

Think about the following:
How would the loss of a key person affect your business?
1) The loss of the person’s expertise
2) The cost of recruiting and training a replacement
3) The loss of clients pr good working relationships that are dependent on that person’s ability or personality
4) The delay or cancellation of any projects that person was working on
5) Recall of any loans guaranteed by that key person

Scary, isn’t it?

Key person insurance will ensure the continued operations of your business.

Benefits of having Key Person insurance:
1) Cover for loss in profits
2) Cover for the downtime – the time it takes to recruit and train.

There are two options when dealing with the tax consideration:
A) The policy can be structured so that the contributions are tax deductible, up to certain limits. The money then paid to the business on claim will be taxable.
B) The policy can be structured so that the contribution are not tax deductible. The money then paid to the business on claim will be tax free.

Shirley Brewer