A key man life insurance coverage is a wonderful way to protect your company from the financial burden of an employee's death. If you believe that this could be a perfect fit for your company, then let me walk you through the options available to you. You can find key man life insurance coverage at an affordable rate with no medical exam or other hassles. Here are some questions you should ask yourself before you begin your search.
What exactly is the key man life insurance policy? This term refers to a single individual who serves as the policy holder in a family policy. It is one of many types of policies that are offered by major insurance companies. The person holding the policy is referred to as the key man. When you purchase a key man policy, it is important to note that the person cannot change his name or die during the policy term. This person also does not have any other benefits tied to him, such as coverage for the spouse. If the key man were to pass away during the policy period, then the policy would still remain in effect but his beneficiary would be unable to collect the benefits.
What is life insurance coverage? You have likely heard the term at one time or another when considering health coverage. Life insurance coverage is basically the same thing, only it is designed to protect a company instead of an individual. The key man may hold the life policy himself. The coverage is designed to pay off your beneficiaries if you die during the specified coverage term. It will pay off the beneficiaries in equal monthly payments over the course of the policy's policy term.
How does a key man life insurance policy work? In most cases, the policyholder will have a pre-determined amount of coverage on their policy. If they die during the policy period, then the remaining amount of coverage will continue to pay off the beneficiaries until the total of the payments equals the amount of coverage at the time of death. The policyholder can choose to withdraw cash from their policy and make immediate withdrawals or sell the policy and pay out the cash to their beneficiaries. There may be other options available, so you should speak to a qualified life insurance broker or insurance agent to determine what options may be best for you.
Do I have to be married to get a key man policy? A key man policy can be purchased either separately or as a combination of two or more individual policies. You do not necessarily need to be married for a key man policy to be considered for your company. If your employer offers this type of coverage, then it is likely the company will require a key man in order to purchase coverage. However, if you are self-employed and working on your own, then you may qualify. The cost of a key man policy may differ according to the amount of coverage provided, so you should consult an insurance agent or broker for more information. You can visit this page for more info.
Is it really necessary to buy this type of policy? This type of coverage is certainly a viable choice. There are several benefits associated with it, including protection of the company, the beneficiary's, and other employees in your company. It may also protect you in the event you die, but it is not mandatory. Many people buy life insurance policies just to provide security in the event of a death in the family, so you should explore this option if you feel this is the case. Check out this post for more details related to this article: https://en.wikipedia.org/wiki/Insurance_policy.