Key Person Life InsuranceRed Line


Do you have an employee working for you that is essential to your business? If that employee passed away, would your business suffer financially? Find that key employee for your business and ask yourself that important question: where does my business sit financially if that person was gone tomorrow?


Question Mark What Is Key Person Life Insurance?

Key Person life insurance is a great way to make sure your business can survive if its key employee suddenly passes away. A good example of Key Person life insurance is a head chef at a restaurant – if that head chef passed away the restaurant may need a lump sum of money to cover the decrease in revenue, and bridge the gap until they can find/train a new chef to replace them.


Question Mark Who Needs Key Person Life Insurance?

Businesses with key employees. Aside from restaurants, there are numerous occupations or industries that should seriously consider purchasing key person life insurance on their key employees. Another example is employees who do quoting for businesses – there are typically a small number of employees who do all quoting for a business, and if they suddenly passed away the company’s ability to continue quoting would be seriously compromised.

Another example is a farm – sometimes a farm has one key employee who overseas numerous aspects of the entire operation, and if that employee passed away there would be a big shoe to fill – life insurance proceeds can help the business breath and give it some time to find the right person to replace them.


Question Mark How Much Coverage?

In most cases you can purchase up to 10 times the employees annual salary as a coverage amount. So for example, if your employee makes $50,000/year, you can purchase up to $500,000 in life insurance on their life.


Question Mark Beneficiary and Payor

Key Person Life Insurance is paid for by the corporation, and the corporation is also the beneficiary. If the employee passes away, the corporation will receive the lump sum payout tax.

Ask our Brokers Red Line

Ask Our Broker - ORR Insurance&Investment

For more information on tenant insurance

Call us at 1.800.876.4163 or Contact us here

Proudly serving southwestern Ontario, we are local, personal and available – family owned and operated, we live in the communities we serve so we care about our clients. Our job is to find you the best competitive combination of price, value and service from over 60 Canadian insurance and investment companies.

Your Orr Insurance Broker can help you determine the appropriate disability insurance for you and/or your business, provide tips on how to prepare for retirement, and shop the market for the policy options and premiums that work best for you.

Ask A Broker

Please feel free to contact us now by

Calling 1.800.876.4163

Or you can use the email form and one of our representatives will reply as soon as possible.

Ask A Broker

    Area of interest

    For advice about

    Right Arrow - ORR Insurance & Investment
    Mobile Icon1.800.876.4163