Every employee plays an important role in the workplace, and losing them suddenly can be detrimental to the business. It takes time to replace a quality worker that many companies don’t have the extra time to do.
However, there are insurance measures that can be put in place in order to make sure that a business can recover from a major loss while still assisting the family of the late worker.
There are custom insurance plans for executives and employees through insurance companies that are crucial to check out as soon as possible. Here’s some key terms and coverages that one should always be aware of when trying to replace an employee that went above and beyond.
Key Person Insurance
In the event of a death or disability, it takes time to replace that employee with someone that’s going to do just as good as a job as they did. Key Person Life Insurance brings death benefits that protect the employer so other employees, customers and creditors can still go about business as usual. When a death benefit is put into place, it can be used to help recruit and develop a replacement for that previous main employee. On top of that, the policy’s cash value can also be available to a business through a withdrawal or loan if necessary.
What happens when you lose a business partner? Having a back-up plan is always a good idea to have. Sometimes things happen. And when you lose a co-owner, it’s time to figure out buy-out solutions. Chronic illnesses happen and accidents can happen too. That’s why preparation is always key for any business. Having a Buy-Sell Agreement in place helps make sure that a business is protected in the event of losing a co-owner.
With this agreement, it’s possible for other co-owners to buy out the part that the late co-owner passed down to their heirs. Getting Life Insurance is crucial for a Buy-Sell Agreement. But there’s a couple ways to get this done: it really depends on the nature of your business. An insurance agent will know exactly how to help you.
Executive Benefits/Voluntary Insurance Plans
Whether they’re an executive or voluntary, there’s a plan that exists to benefit whoever is assisting your company. Retirement plans need to always be put into place, as well as Deferred-Compensation plans, SERPs, and Executive Bonus Plans, Corporate Owned Life insurance and more. Voluntary benefits include Life, Disability, Critical Illness, Accident, Dental and Vision coverage at no cost to the employer. No matter what coverage is needed, more insurance agencies have the flexibility to cater to your exact needs.