Key Person Life Insurance
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Protect Against The Unexpected

The untimely death of a key person – such as an owner, partner or majority shareholder – often has a significant impact on a closely held business. Replacing the expertise and knowledge of an essential individual can take time and money – and may even jeopardize the continuity of the business. You’ll also need to assure creditors and customers that everything is fine. A key person life insurance policy can help the transition.

  • Help heirs meet estate tax obligations without compromising or dissolving a family business
  • Keep the business running and assure creditors and customers that the company will operate as usual
  • Reduce the impact of the untimely death of a key individual by covering expenses of finding and training a suitable replacement

Key Person Life Insurance Features

Protect the value of essential employees

Don’t let the unexpected devastate your business. Key Person Insurance can protect your company’s solvency in the event of losing an essential employee or founder. It pays the company a benefit that can be used to keep the company running. This assures creditors that they will be paid on time while comforting customers that your business will continue to operate as usual. It can also be used to cover expenses related to finding and training a replacement.

How Key Person Insurance works

With Key Person Insurance, the business buys a life insurance policy on the life of the key executive, and is the owner and the beneficiary of the policy. The business pays the entire premium and will receive the entire death benefit. The executive does not have any interest in the policy, nor does his family receive any benefit from it when death occurs.

 

Related Products & Services

For your business financial needs:

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For more information call 1.866.4ML-BUSINESS (465-2874) or e-mail us at AskMLBiz@ml.com.

Merrill Lynch, Pierce, Fenner & Smith Incorporated is a registered broker-dealer, not a bank, and the WCMA account is not a bank account. Banking services are provided by licensed banks or by third parties through arrangements with licensed banks. Unless otherwise indicated, investment products are not FDIC-insured, not guaranteed by a bank and may lose value.

* Additional fees for these services may apply.