Home | Site Map | About Us | Email | Quotes | Contact Form | Privacy Policy | Links | Search

Advantages

For purposes of key person disability insurance, this type of coverage is issued in predetermined benefit amounts that take into account the insured's earned income. It should be noted that key person disability coverage may be issued in addition to and without regard for any limitations on individual disability insurance.

Payment under a key person policy, owned and payable by the business, is made to the business, and is designed to provide the business with liquidity. With money now available to partially replace the key person's efforts, the business can afford to wait for the key person to return to work. The business may also seek to replace the key person; the policy provides the money needed to keep the business going while a search is made and a replacement is brought into the firm. In essence, the key person disability policy is designed to permit the business time to react under a plan that is beneficial to the business.

Generally, the employer who receives the key person disability benefit does so tax free. The fact that benefits are received tax free means, as is generally the case, the premiums are not deductible.

In summary, If you have highly skilled employees that you depend on for the future success of your business, key person coverage is an inexpensive way to protect your business from catastrophic loss. To order a quote, click on the link, or, email us with your needs. [back]