Missouri Key Person Insurance
How to find a local adviser
Written by
Candace Jenkins is a licensed insurance advisor with over a decade of experience. She is also a writer and loves to write on all things insurance. Candace writes for TrustedChoice.com on a continuous basis and is here with the facts about all your insurance inquiries.
Reviewed by
Jeff Green has held a variety of sales and management roles at life insurance companies, Wall street firms, and distribution organizations over his 40-year career. He was previously Finra 7,24,66 registered and held life insurance licenses in multiple states. He is a graduate of Stony Brook University.
Missouri has approximately 1,200,000 people employed by small businesses. When you have employees or officers that are critical to your operation, there's protection for that. Key person insurance can financially help when a vital team member is unable to work.
An independent insurance agent has access to an affordable policy. They work with numerous carriers so that you have options on premiums and coverage. Connect with a local expert to get started.
What Is Key Person Insurance?
In Missouri, you can purchase key person insurance to fill a gap on a staff member essential to your operation.
- Key person insurance: This is a life insurance policy that can be bought for a key executive's life. Your business would pay for the policy's premiums and be listed as the beneficiary. This policy is also known as key man insurance or a business life insurance policy.
What Does Key Person Insurance Cover?
When it comes to your Missouri key person insurance, not all policies are equal. Some creative coverages can be included depending on your carrier. Check out what a key person insurance policy can cover.
- Insurance to replace profits associated with a key person
- Offsetting lost income from sales due to a key person
- Protection for shareholders and other interests
- Cover losses resulting from a business project involving a key person
What Is the Purpose of Key Person Insurance?
When a key person passes, how will your business survive? While it's not a pleasant thing to entertain, it is necessary to be proactive. The more specific you can get about the worst-case scenarios with your commercial insurance, the better.
Key person insurance will allow your company to pay for items until you can find a replacement. It can even help your business avoid bankruptcy when a key person is gone. Check out some things it can cover.
- It will pay debts
- Pay severance to employees
- Close the business down if necessary
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Our independent agents shop around to find you the best coverage.
What Does Key Person Insurance Not Cover?
Key person insurance is important if you have employees you count on to run your day-to-day operations. Essentially, it's a life policy for your business. Carriers offer different coverage options, and some are more robust than others. Your Missouri key person policy may exclude the following.
- Disability insurance for a key person
- Bodily injury for a key person
- Lost wages for a key person
- Long-term care of a key person
A basic key person policy will have these exclusions. Some carriers will have disability and even long-term care coverages. Review your policy offerings for accuracy.
Key Person Insurance Cost
Like your other commercial insurance policies, your costs will vary. Carriers look at personal data and health status to determine your pricing. Take a look at some factors companies use to rate your policy.
- The key person's health history
- The key person's current health status
- The limits of protection you choose
- If the key person has any current life policies
- How long the key person has worked for your company
- What the key person's role is at your company
Your exact costs cannot be determined without a custom quote. The better health and the younger the individual is, usually the lower the rate. The carrier you choose will play a role in how much your premiums are as well.
How to Connect with a Missouri Independent Agent
Key person insurance can be a vital policy for your Missouri business. The best coverage and premiums are hard to come by if you're not sure where to look. Fortunately, a licensed professional can help at no cost to you.
An independent insurance agent has access to multiple carriers at once, so you save time and money. They will do the comparing and present you with the best options. Connect with a local expert on TrustedChoice.com in minutes.