Risk & Business Magazine Branch Benefits Consultants Spring 2017 | Page 29

COVERAGE IN ACTION
Coverage In Action
Why Do I Need...Key Person Life?
BY: QUINCY L. BRANCH
BRANCH BENEFITS CONSULTANTS
J
eff Moses, president of Auto
Custom Carpets, was on his way
home from a business trip in Ohio
when tragedy struck. The small
airplane he was riding in lost
control and crashed into a creek
near Talladega, Ala. The plane exploded
upon impact, killing everyone on board.
Jeff Moses’ death left a huge void in
the company’s leadership team. Not
only was Moses the president and
co-owner of Auto Custom Carpets,
he was also a charismatic sales
leader whose product knowledge and
extensive industry experience were
integral to the company’s success.
Without Moses leading the way, the
company could expect an immediate
and precipitous drop in sales revenue.
The future of Auto Custom Carpets
— and its 150 employees — hinged
on the ability of the two remaining
partners to quickly find and recruit
a qualified replacement before the
company’s working capital dried up.
Thankfully, the executive team had the
foresight to purchase a Key Person Life
Insurance policy for each of the three
partners. Key Person Life Insurance
is simply life insurance on a “key”
employee in a business. The business
owns the policy, pays the premiums
and is named the beneficiary. In the
event of the death of the key employee,
the business receives the insurance
payout, allowing it to remain solvent
during a time of f lux and uncertainty.
The money can be used to make up
for lost sales revenue, fund a buy-
sell agreement or cover the cost of
finding and training a replacement.
The infusion of capital from the Key
Person Life policy enabled Auto Custom
Carpets to sign an experienced sales
professional away from one of their
competitors, and less than 30 days
after the tragic crash, the company was
back up and running at full speed.
Is your business similarly
prepared to survive the loss of a
key employee? Not sure? Contact
Branch Benefits Consultants at
702-646-2082 or 855-846-2490
to discuss whether Key Person Life
Insurance is the right fit for you. +
KEY PERSON LIFE INSURANCE POLICY
ENABLED AUTO CUSTOM CARPETS TO
REMAIN SOLVENT IN THE MIDST OF
TRAGEDY.
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