Serving the Health & Life Insurance Needs of
Texas, Louisiana & Oklahoma

Key Person Insurance


Key Person insurance for life and long-term disability income for major employees,with benefits payable to the business.

Key person insurance has these advantages: 

(1) Enhances the ability of the business to continue operations 

(2) Fosters smooth sale of a going business between an estate and a purchaser by        providing funds to buy out the interest of a deceased key person

(3) Encourages key employees to stay  on the job 

(4) Attracts new key employees

(5) Provides funds for expenses of hiring and training of a replacement key       employee 

(6) Provides a line of credit, a permanent life insurance policy has cash values that       are available for loans at advantageous rates. 

(7) Policy proceeds, which are income free, are payable even if the key person is no       longer in the employment of the business at the time of death; however, the        business must continue to make the premium payments after the key person        leaves the employment

(8) A life insurance policy can be surrendered for its cash value or sold to the insured        key person; thus, the business will usually at least receive the return of        premiums.

(9) Long-term disability income insurance on a key person also provides funds for        salary continuation to the disabled key person. (For temporary disability, the        business might prefer to self insure because the expense of premiums for this        coverage is generally excessive when compared with the potential income        benefits.) 

Battistone Insurance Group



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