WHAT IS AN KEY MAN INSURANCE?

What happens when  a key employee like a manager, top salesperson or partner suddenly dies? The business could be in serious jeopardy, unless it implements a sound financial plan. Key man insurance is an integral part of planning for every business, no matter how big or how small. If planned appropriately, it can protect the business against financial hardship if a key employee dies. Often the survival of a business after such a loss is dependent upon this insurance.

 
FIND THE APPROACH THAT WORKS FOR YOUR COMPANY

At Geraci Financial Group, we will help find an approach to Key man Insurance that works best for your business. Determining the type of key person insurance and the amount needed depends upon the business and the employee insured.

Approach 1 - Company owns the policy and is designated the beneficiary to receive proceeds of the face amount and cash value on the death of the key person

Approach 2 - Key person and company jointly own policy on a reverse split dollar basis - key person pays premiums for and control interests in the policy related to the cash value and the company pays the premiums for and controls the interests in the policy related to the face amount.

Approach 3 - Key person and compay jointly own policy on a split dollar basis - company pays premiums for and controls the interests in the policy related to the cash value and key person pays premiums for and controls the interests in the policy related to the face amount

FOR MORE INFORMATION PLEASE CONTACT US AND WE WILL SET UP THE RIGHT PLAN FOR YOU!