Get A Quote

Harbor America Resources

Key Person Disability Insurance FAQs

Harbor America - Jan 28, 2019 2:42:00 PM

Each company, regardless of size, employs persons who are essential to the continued success of the business. Key person disability insurance was created to protect the business in the event one of their key members suffers an illness, injury, or accident resulting in a disability. Investors, stakeholders, and business owners are able to continue operations and manage finances without major disruption.

LumberYard_KeyPersonFAQs

 

How are Key Persons defined?

A key person or employee is defined as someone who may hold either the most important relationships, accounts, or sensitive information, knowledge, or skills vital to the continued success of the business.

To whom is the payment dispersed?

If needed, coverage is payed to the employer or business.

How are these claim premiums taxed?

Generally, in the US the premiums are not tax deductible.

Aside from finances, what is a benefit of Key Person Disability Insurance?

Planning for any unforeseen events allows the business to have a contingency plan in place for recruiting, hiring, and replacing the key person.

What types of companies should consider adding Key Person Disability Insurance?

Any business who employs someone whose contributions cannot easily be replaced should consider Key Person Disability Insurance.

Clients have come to rely on the Harbor America team for expert advice pertaining to the continued success of their businesses and protecting the future their employees. Contact Harbor America [https://www.hapeo.com/services/] to learn more.

Previous Post

Short-Term Disability (STD) Basics

Next Post

Farm Machinery: Ensuring Employee Safety

ebook-cover-rockstar-update.jpg

Free Download - How Rockstar Business Owners Win Back Right At 8 Hours A Week

Running a business is not for the faint of heart.

  • Get Back to Revenue Generating Tasks
  • Get Back Valuable Time
  • Enjoy the Life You Want to Live
Download Now

0 Comments

Latest Updates

Subscribe to get the latest HR News in your inbox.

As an industry leading PEO we strive to provide you with industry news, HR Tips, and more to help you focus on running your business.

 

Subscribe to Email Updates

100% Privacy. No Spam.

Recent Posts

How Rockstar Business Owners Win Back Right At 8 Hours A Week

Running a business is not for the faint of heart. 

  • Get Back to Revenue Generating Tasks
  • Get Back Valuable Time
  • Enjoy the Life You Want to Live
Download Now