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Key person insurance is a business related form of Life Insurance, and is taken out by a business to protect the business should any financial losses arise from death or incapacity of a member of the business that is specified in the policy.
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∙ 14y ago
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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.
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.
What is special about Key Person Insurance?
Key person insurance is an important form of business insurance. In general, key person insurance can be described as an insurance policy that is taken out by a business to remunerate that business for financial losses.
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.
Life insurance agent?
A life insurance agent is the person who knows about the various life insurance policies and explains them to potential clients. The agent is the person who sells you life insurance.
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.
Can a person who is in state prison and has a low probability of outliving his sentence get life insurance coverage?
A person can get life insurance NO matter where that person is ... it is up to the insurer to issue the insurance on the person more then likely the insurance company will not insure said person ...
Is life insurance a scam?
Life insurance is not a scam. There are benefits and drawbacks to having life insurance, it simple depends on the person's needs.
What kind of insurance does Banner Life Insurance offer?
Banner Life Insurance offer life insurance services. They offer Term Life Insurance which covers a person for a specific time and Universal Life Insurance which covers one for life.
Who pays for the funeral if the person has life insurance?
The insurance company.
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 life insurance do you get for an inmate?
you can't. The person needs to be out and off probation to be able to get life insurance.
