Key Person

Do you have a person important to the revenue, sales, success of your business who may or may not be an owner, that if they were not able to work due to accident or illness, your business would be impacted? Key Person Replacement (KPR) insurance provides benefits to a business in the event a key employee, who is critical to the success of the business, becomes totally disabled.

Key Person coverage is a unique opportunity to protect your business continuation success. Often a business owner will want to protect against the unforeseen death of a key person in the business. The same concern and emphasis should be considered for an event which is much more likely to occur during their employment, the disability of a key employee.

  • Key Person Replacement – A profile of Principal’s Series 700 for KPR. You can add your contact info to this flyer.

Disability Buy-Out

Do you have a written agreement between your current partner(s) that clarifies and provides guidance on the value, payment schedule if you are not able to continue working? Disability Buy-Out (DBO) insurance provides benefit payment(s) to help with the purchase of a totally disabled business owner’s interest under a buy-sell agreement.

How often has the buy sell agreement been funded with a life insurance policy? Does your agreement have stipulations that outline the sale of the business if a disability were to occur? Is the company able to meet the agreed upon obligations set forth from the company cash flow or a loan? A significant risk exposure may be closer than you think!

  • Disability Buy-Out – A profile of DBO purchasers and more information about DBO features

Business Overhead Expense

How will the business be affected if you are not able to work due to an accident or illness? Is there sufficient cash to meet payroll, health insurance, rent, utilities, commercial insurance premiums and other business related expenses? Overhead Expense (OE) insurance reimburses a business owner for business expenses incurred during a disability.

If you are important to the success of your business as the owner, what may happen to the cash flow and stability of the business if you are not able to be “in the office” for an extended period of time due to accident or illness? The rent being paid, health insurance premiums, electricity and many other expenses may be protected with a business overhead expense plan.