Maryland Key Person Coverage (Key Man Life Insurance)
Protect yourself and your business from a disastrous effect should the untimely death of a key person in your organization occur.
Planning Needs Financial Group, Financial planners can work with you to determine the value of protection that you will need should the loss of a key person occur, and get you the coverage that best suits your needs to provide you with peace of mind in knowing that your business can continue without major disruption should an untimely and disastrous situation arise.
Invest in a Key Person Insurance Plan
The untimely death of a key person or a business owner can result in the following circumstances:
- A weakening of the company’s credit rating.
- The financial cost (in time and dollars) to find, hire, and train a replacement.
- The distraction of other employees, resulting in deadlines not met, deteriorating morale, or a higher level of personality conflicts.
- A need for cash to fulfill promises made to the deceased spouse or family, such as salary continuation or deferred compensation.
- The inability to seize a business opportunity, because cash reserves are being used to recruit and train a new employee.
- A loss of confidence among both suppliers and customers.
Additional problems may exist if key employee is an owner:
- Disagreements between the heirs and the surviving business owners or key employees.
- Lack of cash to buy the interest of a deceased owner, requiring a sale of the business to an unknown, outside third party.
- Surviving owners may be forced to work with someone who is either not competent or not motivated enough to make the business thrive.
- The business may have to be sold to pay estate taxes.
Don’t let the loss of a key person lead to the demise or disruption of your company,
contact Planning Needs Financial Group, to schedule a free consultation
and start protecting your company and its longevity today!