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What is Key Man Insurance? 

Key Man Insurance is a life insurance policy intended to protect a business in case of a loss of a partner, highly-compensated employee, sales lead, etc. This policy is very common place in partnerships and bigger companies. It is an important part of succession planning and continuity of a business.  

What are some typical uses of Key Man Insurance? 

Succession Planning: When you have partners in a business you want to make sure that the business can survive in the event of an unexpected death. Having a contract written out between partners back with a key man policy can provide some smoothness in a very difficult time. Key Man Insurance should have enough coverage to buy out the deceased partners interest in the business as well as enough to aid the business expenses that will be incurred during replacement.  

Important Employees: Some employees will be extremely hard to replace in the event of death. Having a Key Man policy on these employees will help the business succeed during tough times. 

Employee Retention & Recruitment: Key Man Insurance can be a huge employee benefit if the company pays for the policy and the employees family are the beneficiaries. The peace of mind that comes from this policy can help with retention and recruitment of important employees.  

Where can I find Resources?

https://lakeviewfinancial.net/ 

https://www.investopedia.com/terms/k/keypersoninsurance.asp

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