What is keyman insurance, what are the compensations of keyman insurance in business.?

Question

what is keyman insurance, what are the compensations of keyman insurance in business.

Answer 1

You can have keyman life and/or disability insurance designed to replace the income or productivity of the lost person either through death or disability.  Calculating the amount is a bit of an inexact science, but life might replace 3-5 years of wages for the key person and disability would replace 50%-80% of the lost income.

http://www.ohioinsureplan.com/

Answer 2

It's life insurance, on a "key man", or critical person, that is owned by the business.  The business pays for it, and the business  collects if the person dies.

Answer 3

Yes keyman is a different type of insurance, and it has its own way of compensation , I came across a short article only basic information explaining about the compensation of a lost business, and it also explains who needs this keyman insurance, i hope this resource will be of a great use to you.

Answer 4

You would want to buy keyman insurance on employees that if lost to death or disability would cost your company financially.  So, if your number one sales person attributed to 80% of your sales you'd absolutely want keyman coverage on that person.  Your company would buy the plan and be the beneficiary.

Jeff