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Key Person Protection
Key people to a business are just that key to the business. Companies should at least go through the information process to evaluate what measures can be taken to protect a business from a key person becoming sick or having an accident.
Example: Harry is the owner of X Company that employs 25 full-time workers. He relies on KEY PERSON George, his manager, to look after the day-to-day operations of the business while he is out dealing with clients and looking for new business. What would Harry do if his associate became critically ill and unable to work?
A "key person" Critical illness policy on George would provide a lump-sum payment to Harry, enabling him to overcome what might have been a deadly blow to his business. Not only would he have funds on hand to cope with the reduced profitability that would result from his manager’s absence, but he would also be able to pay an employment agency to find a replacement.
Another alternative for Wise Financial Group Inc. to investigate for clients is to shop for a specific disability policy that pays a monthly benefit to the company in relation to the income paid to the key person in the event of an accident or sickness. In addition to this a rider is available to pay a lump sum of money to the business to assist in head hunting for an interim replacement or simply to fend off creditors.
Both alternatives above are best to look at so a business can make an informed decision. Contact Wise Financial Group Inc. @ 1-877-779-4731 to speak to an advisor or email us info@companybenefits.ca.