Key person insurance is an integral part of any business continuity or succession plan.
It can save a business hundreds of thousands, if not millions of dollars when they’re most in need of financial support. In some instances, properly designed key person insurance can save businesses from going under and forced to liquidate.
Key Person Calculator
All too frequently, small businesses dissolve due to key members leaving, whether by choice or out of necessity. To avoid this, we use various types of entity agreements—including cross-purchase, and split-dollar—to ensure that the company, its employees and any beneficiaries are adequately protected. To counter the loss of a team member, we have developed our own key person insurance calculator that combines several well-known strategies to provide you a range of insurance values and provide your company adequate coverage. In addition to calculating the revenue a key person brings to your company, we also consider the amount of time it takes to replace that person, how long it takes their replacement to become completely efficient and the present value of the future impact of such a loss.