Home » Why Key Employee Insurance is a Worthy Investment | Houston TX

Why Key Employee Insurance is a Worthy Investment | Houston TX

What is Houston TX Key Employee Insurance

While some people love to push the idea that every employee is replaceable, that just simply isn’t true. In any business, the truth is there’s at least one employee that goes above and beyond to contribute to the success of your company. These employees are referred to as key employees.

Companies struggle to recover from the loss of key employees’ departure from their business. In the most extreme of cases, some even go out of business. But how do you know who qualifies as a key employee? We’ll explain that below.

Houston TX key employee insurance

Houston TX key employee insurance quotes online offer a glimpse at what you can expect.

Key employees often provide companies with advanced skill sets and a unique set of talents that nobody else on the team currently offers. They are a critical component of any business and owners typically turn to them for ideas, strategy, and conversation. On average key employees are:

  • Executive officers, founders, or presidents
  • Small Business Owners
  • An employee who directly affects the brand’s reputation
  • A primary contributor to product design, marketing, and creation methods
  • An employee responsible for bringing in the highest volume of sales
  • A team member that has a business loan or company credit

As you can see, this list defines individuals that significantly contribute to the success of the team. As such, in the event that this team member passes away, the company would struggle.

Key employee insurance is a life insurance policy that is taken out by a company on one of its key employees. The death benefit from the policy is paid to the company, which can be used to help cover the costs associated with the death of the employee, such as recruiting and training a replacement.

Key employee insurance is most commonly used in companies that have a high level of trust between the employees and the management team. These companies typically have a strong culture, and the employees are loyal to the company and its leaders.

Key Employee Policy Options

No company is the same. Knowingly, we offer different insurance policies to suit the needs of different companies. When you use our services, you’ll receive an assigned agent who walks with you during the entire process guiding you along a policy that best fits your needs.

Currently, Best Life Insurance offers two primary insurance options that usually fit any company perfectly. These are the term keyman policies and permanent keyman policies. We’ll discuss each in detail below.

  • Term Keyman Policy

The term keyman policy is the best policy for small businesses or those who have an employee who is nearing retirement. In general, a term policy is less expensive than its permanent counterpart. You can choose a policy length from 1,5,10,25,20 and even 30 years. The draw to term keyman policies is that they’re the more affordable option and they’re under the assumption that they won’t need this policy for very long.

  • Permanent Keyman Policy

    Houston TX key employee insurance

    Your employees are important to you. How would your company fair without them? You might want to invest in them buy getting an insurance policy for them.

The other policy option we have is our permanent keyman policy which offers full coverage for the lifetime of the key person on the policy. This is the preferable option for those who prefer financial stability, own a business, or are just starting out in the business. Permanent keyman policies do accrue interest over time, so in the end, you’ll leave with more money than you started with.

Keep in mind that with any life insurance policy there are three entities: the stakeholders, policy owners, and the beneficiary. The policy owner is the person who is responsible for paying the premiums and signing the insurance policy. The insured person is your key employee, and the beneficiary is the person who receives the death benefits if the insured dies while the policy is in effect.

Why You Should Buy Keyman Insurance

As with any life insurance policy, the most frequently asked question is “why do I need it.” Opting for a life insurance policy is almost preemptive to a death that hasn’t happened yet. However, life happens, and you never know when the worst might happen to you. In this event, it’s best to have your business protected in the event that you lose a key employee.

Your company will be able to use Keyman insurance benefits to pay off existing loans or help ease financial burdens while you work to fill the empty position. Moreover, keyman insurance protects your employees too and helps your business generate cash value it might not generate as quickly on its own.

Houston TX key employee insurance

Once you know your key persons, decide permanent or term.

Overall, there are more benefits than drawbacks to opening a Houston TX key employee insurance policy than not. As such, give our team a call to inquire about what we can do for you.

Contact Best Life Insurance Houston Today

Best Life Insurance has been in business for over 15 years helping everyone around the Greater Houston area. We’ll work with you to personalize an insurance policy that benefits you and you alone. We’ll let you know the potential benefits and drawbacks of whatever policy you’re choosing, no holding back.

You deserve to know every available option so that you know if you’d be better off with a different policy. If you’re ready to take the next step in protecting your business and your employees, give our team a call. We can provide you with a free quote for whatever policy you’re interested in.

You won’t find a better Houston TX key employee insurance policy anywhere else than at Best Life Insurance Houston.

Houston TX Fun Facts:

  • There are more than 150 museums in the city.
  • Houston’s business district, known as the Energy Corridor, has offices and headquarters of over 300 companies.
  • More than 400 events take place in Houston each year.

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