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If my company buys a key man insurance policy, will the benefits (in the case of death/injuries of the key man) be paid to the company both as the policy owner and the beneficiary ?
Key Man Life Insurance plans are normally obtained for the benefit of a specific company, allowing normal operations to continue should a key employee pass away.
As the name implies, a Key ManLife Insurance product is specifically designed to protect an organization against the loss of a vital member of staff. The benefits received from a Key Man policy will ensure that a company has sufficient funding to continue operations whilst overcoming the loss of that employee, and will often be used towards hiring a new member of staff to take over from the deceased employee.
An alternative option, which will provide a benefit to individuals involved in the operation of the company should a key employee pass away, is called Shareholder Protection Life Insurance. In this instance, shareholders would be the beneficiaries from a situation where a key employee dies and the company is dealing with overcoming that loss.
Generally, however, Key Man products are designed to protect the company as a whole (and not specific individuals in the organization) against the loss of a key employee.
Should you have any additional questions regarding Key Man life insurance coverage in Hong Kong, or if you wish to receive a free quotation of a Key Man product for your company, please Contact Us Today.
Answered on: 20 March, 2017 11:15
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