Consider key person insurance as a succession plan safeguard

Posted by Kim Chen on June 23rd, 2017

For many companies, the sudden death of an owner or hard-to-replace employee could spell doom for the business itself. Key person insurance guards against this risk. Your business pays the premiums and, if the insured dies while the policy is in effect, receives the payout. Premiums generally aren’t tax deductible, but death benefits typically aren’t considered taxable income when received. Not every type of business needs this insurance, but it can provide security while you develop a succession plan. We can help you decide whether a key person policy is for you.