Key person benefits.

What Are Key Person Benefits?

Key person benefits are life insurance and disability insurance plans.  However, these type of plans go beyond the limits of traditional group insurance.

Who are Key Benefits for?  Key personnel.  For instance, this is usually the owner, the founders or perhaps a few other key executives.

How do Key Person Benefits Work?

There are a few ways to set up key person benefit programs.  Accordingly, they can be customized to wrap around the group plan. Also, an executive can “buy up” his or her group plan.

Why Key Person Benefits?  Key person policies protect the business in the event of a sudden critical illness or death of a key employee.  Additionally, they protect the executive’s family.  JS Benefits Group specializes in setting up key person benefit programs for all types of employers.  For more information, fill out the form below. Then, we will contact you.

Examples of Key Person Benefits

Key Person Life Insurance

Key Person Life Insurance is set up to protect your business should one of the main partners pass away.  Accordingly, the policy names your business, and pays your business the benefit, as the beneficiary.

How does key person life insurance work?

The premiums for key person life insurance are billed to, and paid for, by the business. For this reason, premiums and benefits are tied the business value shown by financial records.  Accordingly, when the key person dies, the benefit is paid to the business, which helps avoid financial loss.

Regular business expenses can be very expensive.  Thus, this type of policy helps to prevent businesses from going under as a result of a key employee being unable to work.  Accordingly, it will pay for the daily expenses of the busienss while the business owner is off work, due to a qualifying disability.

What type of expenses do business overhead disability policies cover?

This type of policy will pay for payroll, rent, utilities, and other expenses.

Buy-Sell Agreements are key person benefits designed to protect a business after the death of a key employee.  Accordingly, Buy-Sell Agreements (also known as Continuation Agreements) are tied to and funded by life insurance policies.

How do Buy Sell Agreements Work?

Buy Sell Agreements set forth the terms for transferring a partner’s business interest upon a certain triggering event.  Accordingly, a triggering event can be death, disability or retirement of one of the partners. Thus, the surviving or continuing business owner or partner can rest assured knowing that they will be able to purchase the deceased key person’s share(s), without interference from a surviving spouse or his/her estate.

An executive medical reimbursement plan is a medical expense reimbursement insurance policy.  In other words, it is similar to a business expense account, except it allows employers to reimburse their key employees for medical expenses that are not otherwise covered by regular group health insurance.

What does an Executive Medicare Reimbursment Plan cover?

A great thing about an Executive Medicare Reimbursement Plan is that it will reimburse key personnel for premiums and deductibles.  Additionally, this program will reimburse key employees for a range of health services, such as dental expenses, eye care costs, hospital charges and more.  Also, prescriptions and over- the-counter drugs are a covered expense.

Request More Information on Key Person Benefits

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