Highlights Of Affordable Care Act
The Affordable Care Act (the ACA) was passed and made in the law in 2010. […]
23
11, 2017
22
11, 2017
Voluntary Benefits
Healthcare costs will only continue to inflate according to recent trends, which will inevitably shift the cost onto employees and result in increased premiums every month. This makes voluntary benefits the new buzzword in the workplace. According to a survey conducted by Willis Towers Watson, over 92% of US employers now believe that voluntary benefits will become increasingly important to their employees over the course of the next five years. […]
21
11, 2017
Top Voluntary Benefits
The disruption brought about by technology has also seeped through the workplace. Employees now want the same level of customization in a comprehensive benefits package offered as part of their job. Given that voluntary benefits don’t really take too much of a toll on the bottom line of a business, a slew of voluntary benefits are now being offered by employers, these can range from pet insurance all the way to financial security. […]
20
11, 2017
The culture of paid time off (PTO) in the US
It has become expected of workers to burn the midnight oil without taking a break. Research from the Department of Psychology of the State University of New York has shown that workers who have skipped on their vacations for five years in a row are at a 30% increased risk of suffering from heart attacks and other debilitating illnesses – a direct consequence of chronic stress. […]
13
11, 2017
A Guide To Informing Your Employees About Outsourcing Your Benefits Administration
Employee benefits programs serve to fulfill people’s safety needs in any workplace. If you intend to outsource the task of managing benefits to an HR partner, it’s best to commence the change by informing your employees about it. […]
13
11, 2017
Making the best of your retirement
Despite numerous horror stories circulating around the internet about the importance of saving for retirement, few Americans take their savings account seriously. Experts say that no matter what your age is, you should start saving now.
Here are 7 ways to make the best out of your retirement plan
Retire at age 65 or more
Perhaps due to the entrepreneurial bug which bit them to perpetuate a burning desire to start their own business, most Americans are retiring […]
10
11, 2017
4 Ways To Show Your Employees That You Value Them
A basic salary is never enough to keep employees from sticking around their workplace for long, not motivated ones anyway.
A place where your efforts go unnoticed, your achievements unappreciated and your skills untrained—would you stay? […]
7
11, 2017
The Importance Of Refocusing On Your Human Resource Practices
When it comes to HR practices, managers are often blinded to the flaws in their design due to the load of core responsibilities. Chances are it is not a huge flaw violating any employee rights. But there is always room for improvement. […]
3
11, 2017
Private Healthcare Exchanges: What’s The Real Story?
As far as benefit packages are concerned, it is a given that one size does not fit all. That is to say, what works best for a younger, enter-level employee might not sit well with an old empty nester. […]
1
11, 2017
Key Person Benefits Defined
What Is Key Person Insurance?
Key person insurance, sometimes called keyman insurance, helps a business stay financially stable if an owner, founder, executive, or essential employee passes away. The policy is designed to give the company financial support during a difficult transition.
For many businesses, certain people are closely tied to revenue, leadership, client relationships, operations, or long-term strategy. If one of those individuals is suddenly gone, the company may need time and money to stabilize. This coverage can help provide that support.
How This Coverage Works
With this type of policy, the business typically owns the coverage, pays the premiums, and receives the benefit if the insured person passes away. The insured person is the employee, owner, or leader whose loss could create a serious financial impact for the company.
The funds can help the business manage the immediate effects of that loss. Depending on the company’s needs, the benefit may be used to cover operating costs, replace lost revenue, recruit and train a replacement, reassure lenders, protect business credit, or support a transition plan.
This type of coverage is not the same as a personal life insurance policy for the employee’s family. It is designed to protect the business from financial disruption.
Who May Be Considered a Key Person?
A key person is anyone whose knowledge, leadership, relationships, or production is especially important to the company’s success. This may include a business owner, founder, partner, executive, top salesperson, technical specialist, project leader, or employee with hard-to-replace expertise.
The right person to insure depends on the business. For one company, it may be the founder who manages major client relationships. For another, it may be a senior employee who drives revenue, oversees operations, or holds specialized knowledge that would be difficult to replace quickly.
A good test is whether the business would face a measurable financial setback if that person were suddenly unavailable.
Why Businesses Consider Key Person Coverage
Losing an essential employee can create more than an emotional loss. It can affect revenue, client confidence, investor trust, vendor relationships, lending arrangements, and daily operations.
This coverage gives the business a financial cushion while leadership decides what comes next. That may include hiring a replacement, restructuring responsibilities, maintaining payroll, managing debt obligations, or giving the company time to adjust without making rushed decisions.
For many companies, this coverage is part of a larger business continuity plan because it helps protect cash flow, lender confidence, and operational stability after the loss of a critical person.
What Employers Should Review Before Choosing Coverage
The right amount of coverage depends on the role of the key person and the financial risk their loss could create. Employers should consider revenue impact, replacement costs, outstanding loans, ownership agreements, client concentration, and the time it may take to recover.
It is also important to review how the policy is structured. Because ownership, beneficiary designations, consent rules, and tax treatment can affect how the coverage works, employers should review the structure with their benefits advisor, tax professional, and legal counsel.
How JS Benefits Group Can Help
JS Benefits Group helps businesses evaluate insurance and benefits strategies that support long-term stability. Our team can help you review which employees may be essential to your company’s operations, compare coverage options, and determine how this type of policy may fit into your broader business planning.
We help employers think beyond the policy itself. The goal is to protect the company, support continuity, and make sure the coverage aligns with your financial and organizational needs.
Protect the People Who Help Keep Your Business Moving
A business can depend heavily on a few key people. If the unexpected happens, the right coverage can give the company time, flexibility, and financial support during the transition.
If your business relies on an owner, executive, revenue producer, or specialized employee, JS Benefits Group can help you explore your options. Request a consultation or call (877) 355-6070 to review whether this coverage belongs in your business continuity strategy.
FAQ
Is key person insurance the same as life insurance?
Key person insurance is a type of life insurance, but it is designed to protect the business. The company typically owns the policy and receives the benefit if the insured key person passes away.
Who should a business insure as a key person?
A business may consider insuring an owner, founder, executive, partner, top salesperson, technical expert, or any employee whose loss could create a major financial or operational disruption.
What can this coverage be used for?
The benefit may help cover operating expenses, lost revenue, hiring costs, debt obligations, transition planning, or other financial needs after the loss of an essential person.
Is this coverage only for large companies?
No. Small and mid-sized businesses may also need this protection, especially when the company depends heavily on one or a few people for revenue, leadership, operations, or client relationships.
