Business Needs/Key Employee Insurance & Credit Life Insurance

Business Needs/Key Employee Insurance
A key employee is an individual who possesses a unique ability
essential to the continued success of a business firm.  The death or disability
of this key individual could severely handicap the company.  Self-employed
individuals have a need to protect their stake in the businesses for themselves
and their key people.  In these situations life insurance can be used as a
safeguard against financial loss to the firm caused by the death of the
owner, a partner or a key employee, and may be used for other financial
purposes as well.
Credit Life Insurance
This type of insurance is issued to a creditor (lender) to cover the life of
the debtor (borrower) for an outstanding loan.  Many people are not aware
that their car loan or other loans associated with major purchases could
become fully payable upon death.  Credit insurance offered through
lending institutions, stores, and car dealers repays the loan in the event of the
debtor’s death.  At the time of a major credit purchase, you may be advised
of this option.  Please note the option to purchase credit insurance is
voluntary and is not required to obtain a loan Before you sign,be aware of any

restrictions or exclusions.  Some
policies may not pay a claim if it is related to a pre-existing condition or
suicide.  There may be age limits.  Also, check to see if your existing insurance
is sufficient to pay off your debts or could be increased to do so.


Guaranteed Issue Insurance for Older People
There may be times when older people see a special need for extra life
insurance.  If you are in good health, you can obtain life insurance at
premiums that reflect your present age.  However, someone in poor health
that is not insurable might obtain coverage through a life insurance
company that offers a guaranteed issue plan.  These policies are issued with
no medical questions asked.   Be aware that restrictions often apply if death
occurs within the first two or three years after issuance of the policy.