Key person life insurance, also called key employee insurance, protects your company in the event that a partner, top salesperson or executive experiences a disability or untimely death. When this occurs, the business may lose mission-critical management skills, and experience a falloff in sales and productivity. Key person insurance provides financial stability during this difficult period, allowing your company to adjust to the new reality and get back on track again. However, the business may use the proceeds any way it sees fit.
A key employee is usually insured to a multiple of their yearly income. The person designed as a key employee can be changed by uses of a parachute clause that allows one’s life to be substituted. We at Life 100, understand that each client’s needs are unique and provide you with solutions that are best for you, in Ontario, especially for Toronto, Brampton, Ajax, Markham or the Greater Toronto Area.