The Importance of Key Man Insurance for a Business

In most small and medium scale organizations there is a certain key person or persons whose presence in the company matters a lot and whose absence would prove a nightmare for the whole concern. This person or persons may be an HR Manager, Project Manager, Marketing Manager, Managing Director, or so. Such person(s) is referred to as key man or key person in the organization. Life is uncertain and unpredictable, if due to some unforeseen event a company losses its key person (in case of his death, permanent disability, etc.), that would prove to be a heavy toll on the company’s functioning and might even pose a threat to its very existence. Key Man Insurance provides a concrete solution to this problem.

Under Key man insurance, also called key person insurance, an organization takes an insurance policy in the name of its key person(s) for which it pays premiums and becomes the beneficiary. Now, in case the key person dies or becomes incapacitated due to some unfortunate event, the key man insurance provides the funds or financial backup to support the organization in such trying times. It makes for the costs incurred by the company due to the loss of the key person and provides funds required to meet the expenses on finding and acquiring the replacement for the key person. The key man insurance plays such a crucial role for a small or medium concern that in absence of it, the death of the key person would eventually result in the death of the concern.

Wallace Insurance & Benefits is an established insurance firm that provides various types of insurance policies like Key Man Insurance, Family Life Insurance, Health Insurance in Massachusetts, and various others. They specialize in providing insurance covers like key person insurance and Massachusetts Health Insurance policies. For more information about their insurance plans, you may visit: http://wallaceinsuranceandbenefits.com/