Business owners, executives and other key employees spend considerable time and effort to acquire the knowledge, experience, judgement, reputation, relationships and skills that make them valuable to the business. If they were to die, the business loses a key member of the management team and this can have a severe financial impact.
The effect of this situation can be considerably reduced if the business has purchased an insurance policy on the life of the business owner, executive and/or key employees. If they die, the life insurance proceeds give the business working capital to meet immediate cash needs and provide a source of funds for finding, attracting, hiring and training a replacement for the deceased person or to hire interim management.
