Part of my job is to write articles for web article submission sites, all wonderful SEO tricks. I don’t know a lot about life insurance and sometimes writing these articles can be a pain. It’s hard to write about things you are clueless about… unless you spend a lot of time trying to understand before hand. This week I worked on a key employee life insurance article.
I understood the basics, only after working here. You have this employee who is the cat’s meow. He or she knows everything and everybody and is the reason your business is so awesome. So you get an insurance policy on this person. Ok, I guess. And that’s about all I knew, until now.
But after writing an article and exploring it further I can say I’m somewhat comfortable with it. At first I thought, ok, this person is awesome, but how does a life insurance policy help? I figured it was just to provide that employee with an added benefit such as health insurance or a 401(k) plan. However a key employee policy isn’t really a benefit for the employee at all (unless it is a cash value policy for retirement purposes). What it actually protects is the business! Eureka!
Say this wonderful and extremely knowledgeable person who is irreplaceable to your company passes away, then what? Your business will be hit hard. You will lose the relationships that employee had with certain clients or in the community as well as their vast knowledge and skills. Your choices will be to replace them and/or reorganize your business to make up for that employee… which can both be extremely expensive. Hence the key employee life insurance. The purpose of this policy is to keep your business afloat and striving while you manage the change. Just as would a regular life insurance policy that would benefit and protect the family of the deceased. It all makes sense.
The best options would be term life insurance (least expensive option) or a cash value policy (whole life or universal).
I think this is a great idea for business owners!
See, once in a while things click up there 
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found your site on del.icio.us today and really liked it.. i bookmarked it and will be back to check it out some more later
Wow this is a great resource.. I’m enjoying it.. good article
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