Dynamic Lifestyle Solutions - A Brief Guide to Keyman Insurance

by Debit Kunda1 “Dynamic” means to be constantly changing and prog

Keyman life insurance, also called as Employee insurance, and corporate owned life insurance, is an investment to safeguard the key member of your organization and to keep your business running successfully if something were to happen to the key person. Before buying any Key man insurance, estimate the value of your key employees and consider the projects that would be in trouble or lost without such people, the estimate of revenue is being generated by these people as well as the associated costs if they are replaced. Assess whether you can afford them to lose or not.

Who needs Keyman Insurance?

Keyman Insurance is a must-have investment plan. However, not every business requires these insurances or will reap benefits out of it. It generally depends on the process of how your business is put together and some of the most active members of your company. See if losing any of your employees will have any of the following effects.

· Have a loss of any specialized skill

· Have a drastic decrease in your earning capabilities

· Disrupt the everyday business operations

· Distract customers due to a loss of expertise

· Will have a negative impact on the project or the sales campaign

· Put your financial security on risk

If any of the loss occurs due to the lack of your key employees, there are chances that you need this coverage.

How your business gets protected by Key man Life Insurance?

Just like the standard life insurance policy, key man insurance offers businesses with a replacement income which would be lost after the loss of the insured person (Key man). This amount help the businesses to recover from the loss and give an opportunity to survive until the replacement of that person is found. This insurance plan endows the substitute income when the insured dies or quits the work unexpectedly.

Benefits with Key man Life Insurances

Above all its key features, financial security is the core USP of these insurance plans. Moreover, these could easily be implemented without using any internal Revenue Service (IRS) approval. It just requires a yearly report to the IRS.

The benefits paid to the companies with these plans are tax-free. You have a flexibility to use the funds along with the facility of putting together the policy as per your needs. If you also want to secure your business with the loss of your key employee, you need to cover your employee now.

For more information, visit www.dynamiclifestylesolutions.com or call at 774.571.7985.