Hecht-Stout Insurance Agency Dunlap, IL
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Protect Your Business with Key Person Life Insurance

Secure Your Illinois Business with Key Person Insurance from Hecht-Stout Insurance Agency
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Hecht-Stout Insurance Agency/ key person life insurance

Key Person Life Insurance Provided By Our Agency

Many growing small businesses rely on a core group of indispensable individuals who are vital to their success. The unexpected loss or disability of one of these key figures could severely disrupt operations. Key person insurance provides the financial resources necessary for your business to recover and get back on track.

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Revenue loss
Company's reputation
Buying out shares
Repay any collateral assignment
Business growth coverage

Revenue loss coverage

Risk Factors

A company that suffers a revenue loss because of the death of a key employee (such as a high earning agent at a real estate brokerage).

Solution

Key Person Life insurance can be taken to recoup this revenue loss.

Company’s reputation coverage

Risk Factors

Company fails to retain its clients or uphold its reputation based on a particular employee’s skills or name (like a partner at a law firm).

Solution

Key Person Life insurance can be taken to retain their clients and to uphold their reputation.

Buying out shares coverage

Risk Factors

A key person of your company dies unexpectedly and company suffers a loss.

Solution

Key Person life insurance helps another partner to buy out shares in partnership businesses (like a dental practice) where one partner dies.

Repay any collateral assignment coverage

Risk Factors

A key person before dying had taken a business loan which is still to be paid off.

Solution

Key Person life insurance can help to repay any collateral assignment business loans that the key person held or co-signed.

Business growth coverage

Risk Factors

You may need a loan in the near future for the growth of your business.

Solution

Key Person life insurance can help you get new business loans and help with other means to grow your business.

What is Key Person Life Insurance?

Key person life insurance is a policy that delivers a death benefit to a business in the event of the death of its owner or another crucial employee.

When Does Key Person Life Insurance Make Sense?

Key person life insurance is beneficial in various scenarios:

  • If your business's reputation and financial health are closely tied to a key employee's name, reputation, or unique skills, and their loss could jeopardize the business.
  • If the death of a key employee, such as a top salesperson, could quickly threaten the company's financial stability.
  • If a financial institution or other creditor requires collateral for a business loan and insists on the option to place a lien on a key person policy (known as collateral assignment).
  • If your business is a partnership and each partner wishes to have the option to purchase the other's shares in the event of an unexpected death.

Coverage Offered by Key Person Life Insurance

Determining the monetary worth of your key person insurance is more complicated, as there's no universal formula. However, consider the financial impact of losing a key employee on your business.

For example, if you're a sole proprietor buying key person insurance on yourself, you may need enough coverage to help your heirs wind down your business and pay off any outstanding business debts. On the other hand, if you run a larger company and are insuring a critical employee, you might require sufficient coverage to replace the employee's sales income or provide a financial cushion while you search for a suitable replacement.

Ownership and Beneficiaries of Key Person Life Insurance

The ownership and structure of your policy can depend on your company's legal setup. Generally, the company pays for the key person's policy, owns it, and is the beneficiary. The key employee must consent in writing to the company owning the policy.

Suppose you have indispensable key people or individuals whose contributions are so vital that their absence could imperil your business. In that case, key person insurance can supply the necessary money to recover and rebuild in the event of their premature death. Contact Hecht-Stout Insurance Agency in Illinois to learn more about protecting your business with key person life insurance.

Already have Key Person Life Insurance? Switching is easy

It might be time to switch insurers whenever the service that your existing insurer provides doesn’t meet your needs. For example, if you have a poor claims experience or an unexplained rate increase, it might be time to consider other options

If you cancel a previous policy before a new policy is effective, you could run into some serious financial problems.

Contact us today to help you with multiple options to choose from.
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Hecht-Stout Insurance Agency Dunlap, IL
We extend coverage to individuals and businesses in Dunlap, IL and surrounding areas.
1715 Woodside Drive Dunlap, IL 61525
reports@hechtstout.com
309-693-3388
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