Identifying Key Players: 

​

Succession planning kicks off by recognizing those crucial team members who are vital to the organization's success. Think founders, CEOs, or folks with unique skills.

Buying and Selling Shares or Assets:

 

In businesses with multiple owners, Key Person Insurance can be tied to agreements for buying out a deceased partner's shares. It keeps ownership transitions smooth.

Managing Risks:

 

Key Person Insurance steps in to cushion the blow if a key person unexpectedly passes away or can't work due to disability. The insurance pays out a lump sum to the organization, giving some financial breathing room during a tough transition.

Holding on to Talent:

 

Knowing there's Key Person Insurance in place can be reassuring for top employees and stakeholders. It shows that the organization is prepared and stable, which can boost morale and retention

Keeping Things Stable:

 

That insurance payout can mean stability during a rocky period. It helps cover costs like hiring and training new talent, paying off debts, or offsetting lost revenue when a key player is out of action.

Tax Perks:

 

Here's a bonus—sometimes, the premiums paid for key person insurance can be tax-deductible. That's a win-win!

Funding for the Future:

 

Small businesses and non-profits often have limited cash for succession planning. Key Person Insurance acts like a dedicated fund to make sure the handover of responsibilities is smooth, and disruption is minimal.  

Non-Stop Non-Profits:

 

For non-profits that rely heavily on key people for fundraising or program management, key person insurance is a lifeline. It keeps critical work going, even if key players need to step back unexpectedly.