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Key Person Life Insurance
Friday, 24 October 2014 10:13

The loss of a key employee can be devastating. Productivity and profits can decline. Insurance on the life of a critical, key person can compensate a business for the financial losses it may suffer as a result of an employee's death.

It can happen to any company, large or small. Here's a press release from Total, SA, the fifth largest oil and gas company in the world, with over 100,000 employees in 130 countries. They were not immune to the unpredictable risks of life:

CEO of Total, SA, Dies

Mr. de Margerie's annual compensation in 2012 was the equivalent of $3,847,683.

According to most life insurance company's Financial Underwriting Guidelines, the CEO of Total should have been between five and ten times his salary, or $19,238,815 and $38,476,830 in Key Person Life Insurance coverage.

That may sound like a lot of life insurance, but when one considers the financial impact of the loss of a key person, these amounts are reasonable, logical, and may not even fully replace the financial loss incurred by the company.

Life insurance is more affordable today than it was just a few years ago.

For a FREE look at a Key Person Life Insurance policy, click here.

$10,000,000 Key Person Life Insurance

Annual Renewable Term, Monthly Premiums, Standard Non-nicotine

Age Male Female
40 $350.78 $264.38
45 $471.74 $393.98
50 $713.66 $575.42
55 $981.50 $800.06
60 $1,603.58 $1,232.06
65 $2,735.42 $2,250.58

 

Preferred rates are available for large face amount Key Person Life Insurance policies, but require preparation of the proposed insureds for a thorough medical examination by a physician, financial documentation, a well-drafted cover letter explaining the purpose of the coverage and how the face amount was determined. There is almost always some "horse trading" by the agent with the head underwriter of one or several life insurance companies, because at this level business is not just extremely competitive, it's also unforgiving for average agents that do not understand the impact of reinsurance treaties, insurer retention, and financial underwriting.

For a FREE consultation and premium study for a substantial Key Person Life Insurance policy, click here.

Please exercise due care when applying for a larger face amount policy. The financial and medical underwriting is extensive, and errors or ommissions by the applicant or agent can create problems that aren't easily solved after-the-fact. A prudent executive should use the services of a professional life insurance agent that knows how to navigate a client through the process of securing vital coverage.

That's where I come in. I'd like to apply for the job as your life insurance agent. Call me today (800) 680-5596.

"Building a deck is NOT as hard as you think! I've watched TV personality Bob Vila do it many times, and he is a regular 'do-it-yourselfer' just like you, except that he has knowledge, skill, an unlimited budget and a large staff of experts." – Dave Barry

 

Brent D. Gardner, CLU, ChFC