The business typically owns the policy, pays the premiums, and is the beneficiary. Most businesses purchase key-person insurance as a permanent life insurance policy; however, term life insurance may be less expensive and can be bought to cover the key person until he or she retires. The policy can be then transferred to the departing employee as a retirement benefit or to a different key person, upon the retirement of the original key person.
Key-person insurance benefits are often used to buy out the insured person's shares or interest in the company. Buy-sell agreements, which require the deceased executive's estate to sell its stock to the remaining shareholders, legally facilitate this process. Proceeds from key-person insurance can also be used to recruit replacement management.
The following form contains some critical questions you should ask your agent or broker when considering this type of insurance.
Chandler Arizona Checklist - Key Employee Life Insurance
Category:
State:
Multi-State
City:
Chandler
Control #:
US-03079BG
Format:
Word;
Rich Text
Instant download
Description
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FAQ
1. : a maker or seller of tallow or wax candles and usually soap. 2. : a retail dealer in provisions and supplies or equipment of a specified kind. a yacht chandler.
/???ps t?ændl?r/ (also chandler) ?a person or shop that sells equipment for ships and boats.
A person who sells supplies for boats or ships: The ship's chandler always needs extra help when a boat comes in. He became a yacht chandler in Shaldon, at the mouth of the River Teign.
Origin of chandler1. 1275?1325; Middle English chandeler candlestick, maker or seller of candles < Anglo-French, Old French chandelier, literally, someone or something connected with candles, equivalent to chandelle candle + -ier -ier 2.
Chandler (occupation), originally head of the medieval household office responsible for candles, now a person who makes or sells candles. Ship chandler, a dealer in supplies or equipment for ships.
Chandler (noun as in dealer) Strongest matches. banker merchant retailer trader trafficker vendor wholesaler.
Welcome to Chandler, AZ ? a dynamic city known for its tech innovation, cultural districts, and diverse architecture. With a thriving arts scene and commitment to innovation, Chandler is recognized globally.
Chandler in Occupations topic From Longman Dictionary of Contemporary Englishchand?ler /?t???ndl? $ ?t?ændl?r/ noun [countable] someone who made or sold candles in the past ? ship's chandlerExamples from the Corpuschandler? In 1788 the Tandragee Circuit was formed in the house of James Lemon, a chandler.
