Factors That Affect Key Person Insurance Rates

Here’s how key person insurance works: A company purchases a life insurance policy on its key employee(s), pays the premiums and is the beneficiary of the policy. If that person unexpectedly dies, the company receives the insurance payoff. The reason this coverage is important is because the death of a key person in a small company can cause the immediate death of that company. The purpose of key person insurance is to help the company survive the blow of losing the person who makes the business work.

If your company relies on one or more key individuals to operate then purchasing key person life insurance might make sense. This infographic details what factors go into determining key person life insurance rates.

Source :- simplelifeinsure

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