Key Person Insurance

Major challenges for businesses include:

The maintenance of a business upon the

  • Death
  • Disability
  • Critical illness of owners or of key employers
  • The retention of value for survivors

Every successful business has one or more key employees on which the business depends on.

Anyone whose death would cause a financial hardship or economic loss to the company is a key person.

Business owners accept without question the importance of insuring physical assets of the business against loss from fire, storms and other hazards.  However, people make a business.

The Probability of Loss

It has been estimated that the chance of death of a key person is:

  • 14 times greater at age 45 than the chance of a fire loss.
  • 17 times greater at age 50 than the chance of a fire loss.
  • 23 times greater at age 55 than the chance of a fire loss.

The loss of a key person from death is permanent; buildings can be rebuilt.

How much would it cost to replace the person in question?

  • Will the replacement demand more salary than the deceased was paid?
  • Will the replacement do the job as efficiently and effectively?
  • How long would it take to train the replacement? How much would it cost?

How much is the person worth to the company in terms of net profits?

This depends on the position, in some cases it may be easy to tie performance to profits, in other cases it is extremely difficult.

How much would it cost the company if the key person died or could not work today?

  • How difficult would it be to replace the individual’s special talents?
  • Would the company collapse?
  • Would a special project have to be abandoned?
  • Would a department have to be closed?

The key person is a valuable business asset.  So what is the answer?

Key Person Protection

Using Life Insurance and Critical Illness

Life Insurance and Critical Illness cannot replace the human mind but they can indemnify the business for the financial value that can be lost. They can provide cash to:

  • Keep the business running.
  • Assure creditors that their loans are safe.
  • Assure customers that the business will continue operating as usual.
  • Cover the losses from the mistakes that a less capable successor may make.
  • Cover the special expenses of finding, hiring, and training a successor.

The Life Insurance set up.

  • The company purchases life insurance on the key person.
  • The company is the owner of the policy.
  • The company is the beneficiary of the policy.
  • The company pays the premiums.

Key People

Your most valuable asset

Worldwide coverage up to a maximum of $5 million

*Trip lengths up to 182 days (different options available)

*No age restrictions unless it is a family plan then up to age 59
Worldwide coverage up to a maximum of $10 million

*Trip lengths up to 125 days (different options available)

*Available to persons up to and including age 59
Different sums available for purchase

*No age restriction for single person. Family plan up to age 59. Two people plan up to 64
Different sums available for purchase.

Includes:
• Emergency medical coverage
• Trip cancellation or interruption
• Accidental death and dismemberment
• Baggage
Must be purchased with a travel health plan.

*Maximum limit for air flight/common carrier accident is $100,000

*Maximum limit for 24-hour accident is $25,000
Includes the following:

• Emergency medical insurance
• Trip cancellation & trip interruption
• Accidental death & dismemberment
• Baggage insurance

*Only available I 59 years or under

*Pre-existing condition clause does apply
Includes the following:

• Emergency medical insurance
• Trip cancellation & trip interruption
• Accidental death & dismemberment
• Baggage insurance

*Only eligible for customers no more than 89 years old
Baggage Insurance

Rental Car Insurance (physical damage only)

Contact, adventure or extreme sports coverage

*Must be purchased with another plan
Baggage Insurance

Canadian Expatriates Plan

Inpatriates to Canada
Must be purchased with a travel health plan.

*Trip interruption can be purchased separately
Basic or Select plans available

*Only eligible for customers no more than 89 years old

*Trip interruption can be purchased separately
Must be a student and less than 40 years of age

*$2million in coverage
*Family plan available ifunder 40
None available
Must be a student and less than 69 years of age

*$2 million in coverage
*Family plan available if under 59
Must be a student and less than 60 years of age

*$2 million in coverage
*Coverage available for spouse & dependents
Worldwide coverage up at maximum of $5 million.

Policy options:
• Within Canada
•Worldwide
• Worldwide (excluding the USA)

*Pre-existing condition clause does apply

*Persons over the age of 55 must complete a medical questionnaire.

*Different deductible options are available
Worldwide coverage up at maximum of $10 million.

Policy options:
• Worldwide including USA
• Worldwide (excluding the USA)

*Only eligible for customers no more than 89 years old

*Persons over the age of 60 must complete a medical questionnaire

*Pre-existing condition clause does apply

*Different deductible options are available
Worldwide coverage up to a maximum of $5 million

*Trip length up to 32 days or less. Additional days available for purchase if under the age of 55

*Available to persons up to and including age 74
None available
None available
Airfare cancellation or Holiday cancellation packages available

*Must be purchased within 72 hours of initial deposit.
Includes the following:

• Trip cancellation before or after trip
• Missed connections
• Emergency travel health coverage
• Air flight or common carrier accident
• 24 hour accident
• Baggage and baggage delay
• Transportation of deceased

*Must be purchased within 72 hours of initial deposit.

* Trip cannot exceed 32 days in length

*Pre-existing condition clause does apply
Titled ‘Travel Accident Plan’ and must be purchased along with another plan.

*Different sums available for purchase.
Sums insured: $25,000, $100,000 or $250,000

Flight accident also available for purchase
None available
None available
Worldwide coverage up at maximum of $5 million.

*Persons over the age of 55 must complete a medical questionnaire

*Pre-existing condition clause does apply

Visitors to Canada Holiday Package
Student Medical Insurance (Inbound) – Students coming to Canada
Visitors to Canada – Emergency Medical Insurance (Single Trip)
Emergency Medical Insurance – Multi Trip Annual
TuGo
Manitoba Blue Cross
Emergency Medical Insurance – Single Trip
Trip Cancellation / Trip Interruption Insurance
All Inclusive Holiday Packages
Additional Coverages
** Exclusions apply, please refer to a broker formore information **
Accidental Death & Dismemberment Insurance
Student Medical Insurance (outbound) – Canadian Students studying abroad
Allianz Global Assistance
Different sums available for purchase

*Only eligible for customers no more than 89 years old
The mortgage lender
Pay off mortgage
With your mortgage payment
The mortgage lender
Often underwritten at time of death
Not neccessarily guaranteed
None
Usually not available
Often same rates given, regardless of other factors
Benefit decreases as mortgage paid off
If you move, the insurance ends You will have to requalify
Can only cover the mortgage
Decreasing Term
Bank
Anyone - you decide
Beneficiary decides
Invest? Pay off mortgage?
Monthly, semi-annually,annually
Get level benefit Or lower benefit overtime to match yourmortgage
Underwriting at time of application
Fully guaranteed
Premium based on gender, smoking, health, lifestyle
Preferred underwriting available
Individual policies can be customized
Deal with licensed advisors
Insurance stays with you - even if you refinance or change lenders
Take care of all insurance needs with one policy
Term or Permanent
Insurance
Broker
Payment Frequency
Other Life Insurance needs
How Insurance will be used
Beneficiary
Your best options are available through an insurance brokerage.

Let's Compare!  
Type of Life Insurance
Benefit Level
Underwriting Time
Premium Rates
Premium Guarantees
Options and Riders
A needs analysis will take a look at the whole picture and help us determine a plan to suit your needs. A customized insurance plan will put the control where it should be...in your hands.
Now you know the facts, but how does this all fit together?
Lifestyle Discounts
Advice
Portability
Key Person Insurance that's simple, easy, and clear. Get a quote online today.
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