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Does the beneficiary of a key man life insurance have to be the company?
Wiki User
∙ 15y ago
The purpose of Key Man Life Insurance is to benefit the company and provide funds for them to recruit hire and train another key man should the insured die. It is the company that would suffer the loss and therefor is the beneficiary.
Wiki User
∙ 15y ago
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Small Business Insurance?
form_title=Small Business Insurance form_header=Small business insurance is necessary to protect your company. An insurance professional can help you identify the potential risks associated with your company and customize your policy to meet those needs. Type of insurance needed:= {(),Business Owners Policy,Business Auto Insurance,Business Property Insurance,Business Liability Insurance,Home Business Insurance,Workers' Compensation,Business Umbrella Liability,Professional Liability Insurance,Directors and Officers Liability,Business Identity Theft,Group Health Insurance,Business Life Insurance,Key Person Life Insurance,Agricultural Insurance,Product Liability Insurance,Personal Insurance,Not Sure} Number of Full Time Employees=_ Years In Business=_
What is commercial life insurance?
There are many reasons to use life insurance in a business situation. Say you have two people in a partnership and you agree that if one person dies the other will buy out the family of the deceased. Where will you get the money to buy out the family. Life insurance is often the funding source for many such agreements. This example is called a Buy-Sell Agreement. These are funded by life insurance on each partner in a set amount per their agreement. It serves both parties as the survivor gets the business and isn't all of a sudden without a partner and stuck with inexperienced family members who own half the business. The family of the deceased are paid in full by the insurance proceeds without having to negotiate a price for a business at a bad time. Another type of business life insurance is "Key Man Insurance" where a business would suffer financially if an important employee died. The life insurance would pay the business and give them money to overcome the loss as well as to recruit and train a new employee for the important position. There are many other type of business life insurance. For full disclosure, I own and operate a small Independent Insurance Agency in Georgia and have for the past 22 years. I also worked for a direct writer for the 3 years before that.
Cheap Business Insurance?
form_title=Cheap Business Insurance form_header=Looking for affordable business insurance? Find a plan that fits your business needs and your budget. Type of Business Entity:= {(),Corporation,LLC,Sole Proprietorship,Partnership,Non Profit,Trust,Other} Type of Insurance Needed:= [] Business Owners Policy [] Commercial Auto Insurance [] Business Property Insurance [] Business Liability Insurance [] Home Business Insurance [] Workers' Compensation [] Business Umbrella Liability [] Professional Liability Insurance [] Directors and Officers Liability [] Business Identity Theft [] Group Health Insurance [] Business Life Insurance [] Key Person Life Insurance [] Agricultural Insurance [] Product Liability Insurance [] Personal Insurance [] Not Sure [] Other
What is difference between related company and fellow subsidiary?
A related company is a company who has similar or the same management or key personnel i.e. they share the same directors etc.A fellow subsidiary is a company who shares the same Shareholders as another company i.e Holding Company A owns 100% shares in company A and company B. Company A & B are then Fellow Subsidiaries.
Business Insurance?
form_title=Business Insurance form_header=Business insurance is the surest way to protect your business and its assets from financial distress. A licensed insurance professional can help you customize your insurance policy today. Type of business insurance needed:= {(),Business Owners Policy,Business Auto Insurance,Business Property Insurance,Business Liability Insurance,Workers' Compensation,Business Umbrella Liability,Professional Liability Insurance,Directors and Officers Liability,Business Identity Theft,Group Health Insurance,Business Life Insurance,Key Person Life Insurance,Agricultural Insurance,Multiple Products,Personal Insurance,Not Sure} Type of business: =_ Number of part-time employees:=_ Number of full-time employees:=_
Which kind of life insurance policy protects a company from loss caused by the death of a valuable employee?
Key Man life insurance could be either on a term or permanent life plan, where the beneficiary is the employer. The funds can be used by the beneficiary company to hire and train a replacement for the key person employee.
Who is the beneficiary in a life insurance contract?
The beneficiary is the person to receive the coverage amount when the person covered by the policy dies. In the first instance, the beneficiary is named by the applicant when application for the insurance policy is made. Unless the beneficiary designation is made irrevocable, the insured is free to change the beneficiary at any time until his/her death. Unless some provision of law or contract renders the designation of beneficiary irrevocable, the beneficiary does not have a right to remain as beneficiary and ordinarily cannot contest a subsequent change.
Does seeing a pychologist diqualify a person from life insurance?
Not at all as long as you get to the "right" life insurance company. There are a number of life insurance companies that specialize in depression life insurance, bipolar life insurance, anxiety life insurance. The key is to work with an impaired risk life insurance expert who can direct you to the correct company based on your specific circumstances.
Is key man insurance taxable to the person covered as is the case on group-term life insurance paid by an employer's company over 50K?
Key person life insurance is coverage on the life of a key employee and payable to the employer upon that employee's death. The purpose is to protect the company from the financial loss associated with the loss of the employee. Since the employee in no way benefits from a key person life insurance policy, there are no tax consequences to the employee.
Does Xerox buy life insurance policies on its employees with Xerox as the beneficiary?
It could with something called Key Man Insurance but not without the Key Man (or woman) signing the application in consent. It does that for it top managers, like CEO and President, but not for most of its employees.
Are premiums on life insurance of key officers a permanent difference?
Life insurance premium expense when the corporation is the beneficiary is a permanent difference. It is deducted for book income but not for taxable income. And the proceeds received on such policies result in a book gain but are not taxable.
What are the key features of Alfa insurance?
Alfa insurance company offers a broad base of insurance. They have plans to fit all your needs including auto, health, dental, life. The benefit of going with Alfa is being able to have your insurance needs met by one company.
In NC do you have to have an insurable interest in the beneficiary?
You've got it backwards. A beneficiary is the person who has to have an insurable interest in the insured, and that is standard insurance law, in North Carolina or anywhere else. In order to take out insurance on anyone you must have an insurable interest in that person. That does not mean you must have an insurable interest in the beneficiary. Some states do and some states do not. My question is does NC require an insurable interest in the beneficiary? OK, since you are still questioning this, here is the more detailed answer. A beneficiary, by definition, is not being insured; instead, he or she is the person who will receive the insurance payment (in the case of life insurance) when the insured person dies. Since the beneficiary is not being insured, there is no reason why anyone would be required to have an insurable interest in the beneficiary. The reason why insurable interest is required, is that life insurance is not intended to be a form of gambling, otherwise anybody could take out an insurance policy on anybody else. Insurable intersest means that you personally would be financially harmed by the death of a particular person. Children depend upon their parents and therefore have an obvious insurable interest in their parents. Even if the child has grown up and no longer depends upon the parent, that child still has an insurable interest in the parent, because when the parent dies, the child will probably have to pay for the funeral, and will have other expenses relating to that death. Whereas, if you wanted to take out a life insurance policy on a complete stranger, you have no insurable interest. An employer can take out life insurance on an employee, called "key person insurance" if it is thought that the death of that employee would cause financial problems to the company that employs him or her. The star of a motion picture would normally be insured by the movie company, since the death of that person could make it impossible to finish filming, and the money invested up to that point could be lost. That's how insurable interest works. The beneficiary HAS insurable interest in the insured, the insured does NOT have an insurable interest in the beneficiary.
When was the Key Insurance Company chartered?
The Key Insurance Company was originally chartered in June of 2007. Located in Kansas, it was intended to insure private passenger automobiles. Currently licensed in Kansas, Oklahoma, Nevada, Arizona, and Alabama, Key Insurance Company has future plans for expansion.
What is a key person life insurance policy?
A key person life insurance policy is not a special kind of policy. The use of the policy is what makes it a key person policy. Key person life insurance is an arrangement by which a business buys a life insurance policy on the life of a key employee.Companies realize that when they lose key employees, the business itself can suffer a loss of that person's expertise and/or revenue that he brings to the firm. If the employee dies, the business receives policy proceeds. Theoretically, the death benefit equals the losses that the business suffered as a result of his/her death.
What is the difference between life insurance and whole life insurance?
The key difference between life insurance and whole life insurance is that regular life insurance carries a fixed term while whole life insurance covers one's entire lifetime. Whole life insurance also accumulates a cash value that one can borrow money against.
What's a good insurance broker's website address?
Searching is the key. Looking at success rates, insurance policies as well. what may be a good insurance company for me, may not fit your needs at all. Investigating as many as possible is the key.
