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Key Person Insurance is a plan to compensate the employer for the loss of its
most valuable asset — the skill and experience of a key employee or contractor.
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Income tax-free dollars from key person insurance will:
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* Assure employees, customers, and creditors that the business will continue.
* Provide an addition to surplus to help replace lost profits.
* Supply funds to recruit, hire, and train a replacement.
* Can be a source of funds for a stock redemption agreement.
* Could be used to pay a tax-deductible benefit to the key executive's heirs.
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