Key Person Insurance Life and Disability
Most financiers of a company have a vested interest in purchasing insurance for the key person running the company; to protect their loan, investor capital or executive partners. Unfortunately only professional bankers and fund managers, think about protecting their capital from an early death of the founder CEO.
Key Person Insurance is a life insurance to protect the capital invested/ loaned
In Asia, the existence of some businesses depends on the acting CEO. Key person insurance protects your capital invested or borrowed in case of early death or sudden disability of the main persons in charge of the business
Key Person insurance protects your financial partners from loss of capital
In case of an early death of the founder or CEO, some businesses will have to stop. Key-person insurance will pay a definece lump sum effectively protecting their invested or loan capital. An early death means:
#1 total loss due to business closure or
#2 recruit a set managers or the special 1-one manager with the attributes to match the need for connections, knowledge and various management skills.
If possible to find, this ‘sudden and no-other choice situation’ has a price to pay may be huge to attract the perfect candidate in emergency:
- Hire an interim manager
- Hire head hunters
- Pay the short-notice welcome handshake
- Persuade the candidate to take the vacant challenge with top-salary
- And also stock-options in case success or golden parachute if failure