Key Person Life Insurance for Business in Vancouver
Is there a person or multiple people in your business that is the key to survival of the entire business? This could be the star Salesperson who brings in a large percentage of the business revenue or the Operations Manager that keeps the heartbeat of the company ticking by making sure the day to day work is running smoothly. If you do, then you may consider purchasing key person life insurance for this person.
A death of a key person could result in a catastrophic financial loss in the business and therefore you may consider hedging this risk with insurance. The idea is to infuse the business with the right amount of capital, on such an event, so that there is enough of a financial buffer and resources to hire and train a new person to take over the critical role. This is especially important if many employees and their families depend on the business for their livelihood.
The right amount of life insurance differs for each company. The amount of coverage may be calculated using a multiple of the income it would take to hire a new person to take on the key role or the estimated amount of revenue lost, for a number of years, to illustrate a couple of methods of calculating the amount.
VANCOUVER LIFE INSURANCE COMPANY – VENTURE FIRST ADVISORY
To provide more business life insurance services, feel free to contact our insurance advisors at Venture First Advisory. We are located in the heart of Downtown Vancouver in the iconic Electra Building, formerly the BC Electric headquarters. The Electra building can be recognized by the unique blue and green fin lights that run the vertical height of the building. While we now do most of our business, including life insurance, by phone and/or video conference, our location is within easy access for those who work or live downtown.