Life & Health Insurance

Contact us for all your insurance needs.  We offer individual life & health insurance.


Key Person Insurance

Key Person Insurance is simply life insurance on the key person in a business. In most small businesses this is usually the owner, or perhaps a vital employee or two. These are the people who are crucial to a business.

How does it work? A business purchases a life insurance policy on its key employee(s), pays the premium and is the beneficiary of the policy. If that person unexpectedly dies, the business receives the insurance proceeds. The purpose of key person insurance is to help the company survive the blow of losing the person who makes the business work. The business can use the insurance proceeds for expenses until it can find a replacement person, or, if necessary, pay off debts, distribute money to investors, pay severance to employees and close the business down in an orderly manner.

How do you determine who needs this insurance? Look at your business and think about who is irreplaceable in the short term. In many small businesses, it’s the owner who holds the company together… they may keep the books, manage the employees, handle the key customers and so on.

How much key person insurance do you need? That depends on your business, but in general, you should get as much as you can afford. I suggest that you use term insurance as it allows for a larger amount of insurance at a more affordable premium.

Brad Lessard CAIB CRM
Senior Account Executive & Employee Benefits Consultant

For Ontario franchises that would like a quotation for Key Person Insurance please call Brad at 519-870-0454