Key Person Insurance
When one person's work, relationships or expertise keeps a company moving, their loss can create a financial gap. Key person insurance planning starts by estimating that gap and deciding how the business would respond.
Guidance from Ramandeep Singh in Brampton, serving Ontario and New Brunswick. Coverage and product availability depend on eligibility and province.
Where planning can help
It is coverage arranged to help a business manage the financial impact of losing an important person. The company is commonly the policy owner and beneficiary of key person life insurance. Ownership, consent, insurable interest and the intended use of proceeds need review.
Consider lost revenue, recruitment, training, debt and the time needed to restore operations. A useful coverage discussion starts with company figures and existing resources, rather than a fixed multiple of salary.
Money for keeping the company running serves a different purpose from money to buy a deceased owner's shares. If both needs exist, coordinate the amounts, beneficiaries and legal documents so the same funds are not counted twice.
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