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.

What Is Key Person Insurance?

Key person insurance is a life and disability insurance policy that a business takes out on essential personnel which often include managers, executives, and owners. The business acts as beneficiary –– it pays the premiums and covers the costs, but also receives any payouts.

Do You Need Key Person Insurance? 

Imagine losing your top salesperson tomorrow. Imagine not having access to a top executive’s contact list or their specialized knowledge. Imagine what would happen if the CEO of your company had to leave for an extended period of time. What would happen to your business? Would you have the funds, personnel, and the resources you need to stay afloat –– let alone reach your current goals? How much revenue and how many growth opportunities would you miss as a result?

Key person insurance acts to mitigate the risk that businesses face from unexpected losses of key team members. Now more than ever, it’s crucial for businesses to have proper succession and exit planning strategies in place. And key person insurance is a vital piece of both.

What Does Key Person Insurance Cover? 

A key person insurance policy may come into effect when a key person dies or becomes disabled. Should a key person either die or become incapacitated, key person insurance may cover all of the following: 

  • Overhead costs. 
  • Costs associated with hiring temporary personnel.
  • Costs associated with recruiting, training, and hiring a permanent replacement. 
  • Losses incurred from sales or revenue. 
  • Losses incurred as a result of a business’s inability to grow. 
  • Losses incurred by shareholders or partnership interests.
  • Monthly business debt obligations.
  • Contractual obligations.

Why Choose Helm Financial? 

Unlike other businesses in our field, our team at Helm Financial is uniquely qualified to offer key person insurance support. 

  • We have the experience needed to advise you with confidence, and we’ve worked with businesses across industries to deliver business continuity and succession planning solutions. 
  • We’re fully independent – which means that we can help your business secure the best quote possible for your policy. 
  • We utilize a unique underwriting process that allows us to obtain offers and negotiate policy coverage and costs prior to a formal application. This ensures the highest probability of success for optimal coverage.
  • We have in-depth knowledge not only of key person insurance but all forms of business continuity planning. We won’t just help you find a good insurance policy – we’ll help you build a plan to protect your business’s future viability. 

WayPilot Program

At Helm Financial, there’s one other important differentiating factor between us and a traditional insurance broker – the WayPilot Program.

Our WayPilot Program is designed to allow businesses to secure essential insurance at the lowest possible price and with the highest probability of success.

We put your health first to maximize your savings and we are the ONLY company pioneering insurance in this way.

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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.

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Secure the key person insurance you need at the best price.

Contact us to learn more about key person insurance policies and to get a quote.