Is a protection against the loss of income that would result if the insured passed away. The named beneficiary receives the proceeds and is thereby safeguarded from the financial impact of the death of the insured.
There are different types of life insurance available.
- Term Life Insurance
- Whole Life Insurance
- Cash Value Life Insurance
- Universal Life Insurance
While these all offer protection, there is one life insurance policy that is often overlooked:
Key Person Life Insurance is needed if the sudden loss of the key executive would have a large negative effect on the company’s operations. The payout provided from the death of the executive essentially buys the company time to find a new person or to implement other strategies to save the business.