Key Person Insurance – Salt Lake City, UT

With key person insurance, you’ll have the financial support and protection your business needs if a key employee dies or is permanently disabled.

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Key Person Insurance –
Salt Lake City, UT

With key person insurance, you’ll have the financial support and protection your business needs if a
key employee dies or is permanently disabled.

Key Person Insurance –
Salt Lake City, UT

With key person insurance, you’ll have the financial support and protection your business needs if a
key employee dies or is permanently disabled.

In Salt Lake City, key person insurance protects a company from the financial loss of losing an essential employee. Often, the loss of a key executive can result in the loss of an entire company without the right insurance in place.

Individual life insurance policies provide a payout to a beneficiary in the event of the policyholder’s death. Key life insurance policies are similar, but the payout goes to to the company for which the policyholder was a key employee, rather than an individual.

With key person insurance, you’ll have the financial support you need to keep your business afloat while you replace a key employee, or make any other necessary steps in moving forward.

Plenty of questions come up when you’re picking a key person insurance policy, and understanding these policies will ensure you choose the right one for you.

What is the purpose of a key person insurance policy?

Key person insurance often provides a company with a better alternative to immediate bankruptcy in the event of a key employee/owner/founder’s death. In addition to protecting your company from the loss of an employee whose work is vital to the company’s existence, it provides several other benefits.

  1. Some policies can become retirement bonuses for key persons
  2. Demonstrate a key person’s value
  3. Your business may be able to use the policy as a cash loan when necessary
  4. The policy can be used to pay off debts, train replacements, pay off investors, provide severance, and more

Is key person insurance tax deductible in Salt Lake City?

We’re often asked if key person insurance is taxable, and the answer is yes and no. Annual or monthly premiums for a key person insurance policy are generally not tax deductible if the taxpayer is a beneficiary of the policy. However, key person insurance payouts typically are tax deductible if they are part of the company’s claimed income.

Key person insurance policies can be tricky to navigate, which is why we recommend getting in touch with the experts at Salt Lake City Insurance to discuss the kind of policy you need and answer any questions you might have.

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What is the cost of key person insurance in Salt Lake City?
Key person insurance is affordable, ranging from a hundred dollars to a few thousand dollars a year. The cost may depend on the health of the key people insured, the number of key people insured, the amount of coverage, and the type of policy selected. For more details on affordable key person insurance options, contact our trusted agents at Salt Lake City Insurance today.
How does key person insurance work?
The company or business selects and purchases their key person insurance policy. From there, the company pays the premiums involved. If the key person dies, the company receives the insurance payoff. This helps lessen the financial blow, as well as gives time for the company to possibly hire someone new.
Can you have multiple key persons in a key person insurance policy?
Yes, some policies allow multiple key persons. If you want to add a person to your existing policy or discuss multiple key person insurance options, call Salt Lake City Insurance. Our team can help you find the right insurance for you and your business.

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SALT LAKE CITY INSURANCE GROUP is your best option for comprehensive and budget-friendly coverage in the area. Our fast and friendly service saves you valuable time and money in finding the coverage you require for your family, your business, and your property. Contact us now to get started.


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