{"id":2455,"date":"2022-03-25T19:56:46","date_gmt":"2022-03-25T23:56:46","guid":{"rendered":"https:\/\/doereninsurance.com\/?p=2455"},"modified":"2023-08-29T14:47:54","modified_gmt":"2023-08-29T18:47:54","slug":"introduction-to-key-person-insurance","status":"publish","type":"post","link":"https:\/\/doereninsurance.com\/news\/introduction-to-key-person-insurance\/","title":{"rendered":"An Introduction to Key Person Insurance"},"content":{"rendered":"<div class=\"wpb-content-wrapper\"><p>[vc_row][vc_column width=&#8221;1\/1&#8243;][vc_single_image media=&#8221;2467&#8243; media_width_percent=&#8221;100&#8243;][vc_column_text]<span style=\"font-weight: 400;\">Successful businesses often have a key person whose skills and experience are critical to the organization\u2019s long-term financial stability. This key person may be the founder\/co-founder, director, or in any number of positions that are central to operating the business. In the event of their departure or premature death, it\u2019s important to safeguard your company\u2019s financial health.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">At Doeren Mayhew Insurance Group, we know that the unexpected can happen. That\u2019s why we guide business owners in securing the right insurance solutions to protect their future success. Key person protection may cover operating costs related to recruiting, training, and replacing individuals who are essential to a business&#8217;s operations.\u00a0<\/span><\/p>\n<h2><b>What is Key Person Protection?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">This type of insurance allows a business to insure itself against potential financial losses should a key person in the company leave. The proceeds of a key person protection policy are directly paid to the business to help hedge against the financial impact of their death or illness, per the terms of the policy. This helps compensate for the loss of their unique expertise and leadership.<\/span><\/p>\n<h2><b>Who is a Key Person?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Whether the departure comes illness or death, this talented individual\u2019s absence would significantly impact the company\u2019s bottom line. It could be key personnel whose skills, experience, and knowledge affect revenue and future sales such as as the following:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Chief Operating Officer<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Founder<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Chairman<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Sales Manager<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Marketing Manager<\/span><\/li>\n<\/ul>\n<h2><b>Benefits of Key Person Insurance<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">It\u2019s not fun to plan for the worst-case scenario, but it is responsible for businesses to do so. If a key person at your organization were to pass away, a key person protection policy can protect your business from substantial financial damages that are associated with the following:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Replacing lost profits<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Recruiting and training replacements<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Losing highly-profitable contracts<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Securing reputation management resources<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Paying outstanding loans<\/span><\/li>\n<\/ul>\n<h2><b>How Much Does Key Person Insurance Cost?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The cost of your policy will be contingent on many factors that include the type of the policy, amount of the coverage, the key person\u2019s age, gender, and health profile, and the company\u2019s size and industry.<\/span><\/p>\n<h3><b>Type of Policy &amp; Amount of Coverage<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">If the policy pays out in the case of death, the cost of your key person protection policy will be lower than when coverage is activated for illnesses or disabilities, which include cancer, heart attacks, and other major health concerns. That said, the price increases as the number of situations that the policy covers are added.\u00a0<\/span><\/p>\n<h3><b>Key Person\u2019s Age, Gender &amp; Health Profile<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Premiums are heavily informed by the age, gender, and health profile of the individual identified as the key person on the policy. If the insured person is of an elder age and is experiencing major health concerns, you will likely pay more for the insurance policy than if they were younger with a more low-risk health profile.\u00a0<\/span><\/p>\n<h3><b>Company Size &amp; Industry<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Larger companies with high revenue numbers are more vulnerable to significant financial losses in the event they lose a hard-to-replace employee Those businesses will incur higher policy fees because it also leads to higher policy payouts. Also, different risk potential for death and critical illness comes with a company\u2019s industry. And, not surprisingly, an increased level of risk leads to increased premiums.<\/span><\/p>\n<h2><b>Get In Touch<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">At Doeren Mayhew Insurance Group, our trusted advisors are on hand to deliver the guidance you need to plan for protecting your business when a key person departs. From covering revenue losses and training personnel to investing in reputation management and repaying loans, the benefits of key person protection offer valuable risk management solutions for businesses like yours.\u00a0<\/span><\/p>\n<p><a href=\"https:\/\/doereninsurance.com\/request-a-quote\/\"><span style=\"font-weight: 400;\">Contact us today <\/span><\/a><span style=\"font-weight: 400;\">to learn more about how our customized insurance solutions can provide financial relief if you lose a critical team member.\u00a0<\/span>[\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>Successful businesses often have a key person whose skills and experience are critical to the organization\u2019s long-term financial stability. This key person may be the founder\/co-founder, director, or in any number of positions that are central to operating the business. In the event of their departure or premature death, it\u2019s important to safeguard your company\u2019s financial health.<\/p>\n","protected":false},"author":1,"featured_media":2467,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10,44],"tags":[],"_links":{"self":[{"href":"https:\/\/doereninsurance.com\/wp-json\/wp\/v2\/posts\/2455"}],"collection":[{"href":"https:\/\/doereninsurance.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/doereninsurance.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/doereninsurance.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/doereninsurance.com\/wp-json\/wp\/v2\/comments?post=2455"}],"version-history":[{"count":5,"href":"https:\/\/doereninsurance.com\/wp-json\/wp\/v2\/posts\/2455\/revisions"}],"predecessor-version":[{"id":2468,"href":"https:\/\/doereninsurance.com\/wp-json\/wp\/v2\/posts\/2455\/revisions\/2468"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/doereninsurance.com\/wp-json\/wp\/v2\/media\/2467"}],"wp:attachment":[{"href":"https:\/\/doereninsurance.com\/wp-json\/wp\/v2\/media?parent=2455"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/doereninsurance.com\/wp-json\/wp\/v2\/categories?post=2455"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/doereninsurance.com\/wp-json\/wp\/v2\/tags?post=2455"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}