The business scenario:
John Halen was the top sales person in the company … by far. The revenues generated by John surpassed those generated by three other sales professionals combined. The owner of the company, Marci Zanes, shuddered to think of what might happen to all of them if something happened to John.
The key person insurance challenge:
Marci wanted to protect her company’s revenues in the event that John was ever unable to work due to disability. She also wanted to provide his most valuable employee, John, with a rich added benefit to help sweeten the employment deal. In other words, she didn’t want to take any chances on losing John as an employee, or on losing the revenues that John generated. She discussed the challenge with her insurance agent, and considered purchasing disability insurance, but found that a typical individual disability insurance policy was insufficient.
The disability insurance solution:
Marci spoke with Disability Insurance Services and discovered a new product option. Because John was considered a “rain-maker” and an “essential revenue source,” she was able to secure key person disability insurance for John to protect business revenues. In addition, she secured a disability income policy for herself, John, and few other key employees, taking advantage of a nice multi-life discount. It was a win-win solution that protected the business and provided the entire team with additional financial security.
Would a key person disability insurance policy work for your business clients?
Here are some additional details:
- The policy typically provides a 1 or 2 times multiple of the key person’s income up to $100,000 per month or $20 million lump sum!
- Benefits are payable to the business to use at the business owner’s discretion to bridge the gap in business revenue, hiring and training a replacement and filling temporary staffing needs.
Puddle-proof your business clients with key person insurance
Many of your businesses clients face this same challenge. Don’t leave them without an umbrella. Coverage is available for key persons, including business owners with more than 50 percent ownership.
To learn more about disability insurance solutions for business owners, click here.