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Keyperson Life Insurance

Key person insurance offers a financial cushion if the sudden loss of a certain individual would profoundly negatively affect the company's operations.

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The death benefit essentially buys the company time to find a new person or to implement other strategies to save (or shut down) the business.

In a small business, the key person is usually the owner, the founders, or perhaps a key employee or two. The main qualifying point is whether the person's absence would cause major financial harm to the company. If this is the case, key person insurance is definitely worth considering.

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