Evergreen Life & Health

Key Person Protection

Some businesses depend heavily on one or two people. If one of them died, the company could lose income, customers and momentum at the same time. Key person insurance is one way to prepare.

How it works

• The business owns the policy, pays the premium and is the beneficiary.
• The person insured must agree in writing before coverage begins.
• If that person dies, the benefit is paid to the business.

How a business might use the benefit

• Cover lost revenue while the company adjusts.
• Pay for recruiting and training a replacement.
• Repay a loan or reassure lenders and partners.

Different from a buy-sell agreement

Key person insurance protects the company. A buy-sell agreement is a separate arrangement that sets how ownership is transferred. We can explain how the two fit together, and your attorney and accountant should review both.

What we ask

• Who is the person the business depends on most, and why?
• What would a loss cost the business over the first year?