How much are you worth to your company? A million dollars of
revenue a year? Thirty million? What about the sales manager
who's spent 10 years making contacts in your industry?
Impossible to quantify? You'd better try.
"If someone buys equipment, they don't think twice
about insuring it," says David B. Schulman, a chartered life
underwriter and chartered financial counselor for Massachusetts
Mutual Life Insurace Co. in Fort Lauderdale, Florida. "Yet the
success of a small business depends more on its people than on its
capital equipment. If a key individual dies, a business can suffer
debilitating financial loss."
Companies can guard against the loss of important figures by
purchasing "key person" insurance, life insurance
policies that are carried by the business, rather than the
individual. Key person insurance can even help your business
survive a more likely event: the departure of a valuable employee
in pursuit of other opportunities.
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"A policy can be structured so you have the cash value of
the policy available to you in the event a key person leaves the
business," explains Schulman. "In effect, you're
putting dollars away for when you need them."
Contact Source
Massachusetts Mutual Life Insurance Co., (954) 938-8800,
fax: (954) 351-2468.
Claire Tristram is a business and technology writer in San
Jose, California.