If you had a goose who laid golden eggs would you insure the eggs or the goose?
"Even though I'm back at work now, I know that I can use my policy again if I need to."
Who do you rely on to bring income into your business? Do you have a key staff member who facilitates the day to day running of your business? What would be the financial effect of their absence over an extended period of time due to illness or accident? Would your biggest customers stop doing business with you? Would your biggest suppliers demand payments and stop selling to you on credit? Would you lose so much income that you would have to sell some of your business assets to pay your debts and expenses? Would you have to sell some of your personal assets to pay off debts that you personally guaranteed?
Seven specific benefits of key person protection:
1. Replaces the loss of income due to death or disability of a key person
2. Covers expenses
3. Pays for the cost of replacing a key person
4. Pays debts and accounts payable
5. Protects your assets
6. Replaces lost profits
7. Assures your banks, customers, creditors, and employees that if anything should happen to you or your key people your business will still have the financial resources to keep going.