Article: Key person keynotes

KEY PERSON KEYNOTES

Certain individuals can be crucial to a company's operation, says Michael Laurence. It makes sense to insure against their loss

Key person' insurance is potentially a valuable business tool, although it is still suffering from the product's misuse during the 1980s, when it was oversold and over-hyped. But as companies begin to see human resources as crucial assets, key person insurance is being reassessed. Tougher laws on the sale of insurance and investment products along with more limited tax deductions have contributed to the return of key person insurance to its original purpose.

Unlike conventional life insurance policies, the employer pays the premiums for key ...

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