Key Person Benefits
Protect your high-earning, valuable key executives and your business.
Typical Group Life and Disability insurance offered to employees usually only cover a fraction of a key executive’s high income. DVB Insurance Services can customize a benefit package to wrap around the group plan for each of your key people, ensuring they and their family members are adequately protected in the event of an untimely death, accident or illness. When you provide your executives with key person insurance, you are not only protecting the executive and his/her family, but you are also creating a safety net for your business.
Types of Key Person Benefits
Key Person (Key Man) Life Insurance protects your business if one of the main partners passes away unexpectedly, and helps to minimize financial loss. Your business is typically responsible for the premiums, as it is also the beneficiary. The value of your business (as established through financial records) will help to determine the benefit level and premium amounts.
A Business Overhead Disability policy prevents businesses from going under from regular overhead expenses while the business owner is unable to work and run the business due to disability. These types of policies will typically pay for things like employee salaries, rent and utilities, among other expenses.
Buy-Sell Agreements protect a business after the death of a key employee. Also, known as Continuation Agreements, they are tied to and funded by life insurance policies. The agreement sets out the details of the transfer of business interest by the key-person (or his/her estate) upon a certain triggering event–usually death, disability and retirement. The surviving or continuing business owner or partner can rest assured knowing that they will be able to purchase the key-person share without interference from other survivors of the key person and his/her estate.