Win-Win benefits for both director and the corporation
Executives or Company Directors are the people who are essential to the business, for businesses where directors are both founding and managing the organization. Losing a director can inevitably affect the future of the company. Keyman insurance can be prepared to deliver the family business to the next generation from the unexpected. As life insurance, Keyman insurance which covers the director’s life can reduce the risk of maintaining business continuity.
What is Keyman Life Insurance
It is life insurance for the executive or directors of the company. The company is the one that pays the insurance premiums. Keyman insurance can reward directors who give afford to grow the organization. On other hand, it is also beneficial to the company to bring the insurance premiums paid to be an expense of the company following the rules of the Revenue Department.
Keyman life insurance benefits
Keyman life insurance benefits both the company’s directors as the insured, and also business organizations that pay insurance premiums. The insured will receive benefits from the life insurance policy which meets the objectives of buying; it may provide for family inheritance, family business protection to prepare business continuity when a replacement for the unexpected pass away of a director is needed, or the proposal of annuity income from a retirement plan, and also to benefits for medical expenses from illness or injury accidents. The keyman insurance can be an additional compensation on top of regular income and annual bonus, where insurance benefits of annual cash back benefit while still alive. In case of passing away during the policy term, the life policy will be directly paid to the directors’ family or returned to the company as specified. The company’s directors can create peace of mind both for themselves and family in dedication to creating works focusing on building up the growth of the company. While the company pays premiums for the director policy, those premiums paid can count back as a corporate expense to save the company’s taxes.