Group Life supplies each employee with their own life insurance policy, ensuring that in the event of their death their family and loved ones are taken care of.
A key advantage of group life insurance for businesses is that the group members can get coverage at a lower rate than if they bought an individual policy. It is viewed by employees as a valuable benefit and helps to reward and motivate staff, thus improving productivity and retention.
Key Person Insurance (Key Man Insurance):
Key Person cover is life insurance that a company purchases as protection against the death of an employee whose contribution to the business is critical. This could either be a business owner or a key employee, whose immediate absence through death would have a negative impact on the business.
Key Person Insurance helps your business to cover the financial losses, such as hiring a replacement, making up any losses incurred or paying off debts or severance packages if the business needs to close. Fundamentally it ensures that business can continue uninterrupted and that all the employees who depend on the business have a secure future.
Buy- Sell agreements:
If you have a business partner, you may want to consider purchasing a buy/sell agreement. In this arrangement, you and your business partner will own policies covering each other’s lives. If the first business partner passes away, the other receives a death benefit that can be used to buy the remaining half of the business. This results in a cash payment to the deceased’s family, as well as security for your business to continue operating without any external influence.