Forums » Life Insurance

• T Ghosh

  

  • 144 posts
   

  March 1, 2014 11:07 PM IST

  • Key person life insurance or key employee life insurance is insurance that a business purchases on the life of a person whose continued participation in the business is necessary to its success and whose death would cause financial loss in the business.
  • Depending on the needs of the specific situation, a business might purchase either term or permanent insurance on the life of a key person.

   

  Life Insurance as an Employee Benefit:

  • Businesses often use insurance products to provide for their employees.
  • Individual insurance products are also used in certain instances to provide employee benefits for selected classes of employees.
  • There are two types of individual life insurance benefit plans:

   

  • Split-Dollar Life Insurance Plans:

   

   

  a)      A split-dollar life insurance plan is an agreement which a business provides individual life

  insurance policies for certain selected employees, who share in paying the cost of the policies.

   

  • Deferred Compensation Plans:

   

   

  a)      A deferred compensation plans is a plan establishedby an employer to provide income

  benefits to an employee at a later date, such as after the employee’s retirement, if the

  employee does not voluntarily terminate employment before that date.

  
  This post was edited by T Ghosh at March 1, 2014 11:07 PM IST