Key Man Cover

Key Man Cover refers to an IUL policy taken out by a business on the life of a key employee, executive, or owner whose contributions are critical to the ongoing success and profitability of the company. In the event of the key person's death, the death benefit from the IUL policy is paid to the business, providing financial support to offset the loss of the individual's expertise, skills, or business contacts. The unique aspect of using an IUL for Key Man Cover is that, while providing a death benefit, it also allows the cash value of the policy to grow based on the performance of a selected stock index, without the risk of direct market investments. This cash value can be accessed by the business for various needs, offering flexibility and potential tax advantages.