Key Person Insurance is one of the business insurance products offered by Glacier, a Sanlam-owned insurance company. Glacier’s key person insurance, which provides a conventional key person coverage, can cover all of a company’s important employees.
This cover can be used by a corporation to safeguard as many important employees as possible. These must be the people whose loss will have a financial impact on the organization and who are regarded as important. The money received from the Glacier key person insurance can be applied to a variety of expenses, including but not restricted to:
- Training of a replacement,
- Paying off creditors,
- Saving for emergencies, and more.
How much a company would require to continue operating in the event that a key employee passes away will determine the level of cover for critical staff. As a result, any amount can be used as the coverage amount per key individual. However, the monthly premiums that must be paid will vary depending on the level of coverage.
Glacier Key Person Insurance might be the solution to maintaining a company’s turnover or at least helping it stay somewhat stable. This is so because people in management or who serve as directors are difficult to replace. Calculating the cover amount is necessary in order to account for both the expense of a successor and the income loss attributable to a key individual.
The Glacier Key Person Insurance is an intriguing business insurance policy, and obtaining one for your company could help it stabilize in the event that a key employee passes away. To evaluate what Glacier offers for its product, a more thorough discussion of Glacier’s Key Person Insurance is as follows.
Glacier Key Person insurance summary
Glacier Key Person Insurance is a type of insurance that safeguards a company or business by covering its important employees. Each company will be uniquely underwritten because Glacier Key Person Insurance’s cover amount is personalized. A thorough underwriting of the key individuals to be insured must be completed before payments are made.
You can purchase Glacier Key Person Insurance to protect the lives of important employees. Additionally, the insurance product can be used to pay for any disability that a key employee might incur. If a company decides to also cover a key employee’s disability, the Glacier key person insurance premiums will increase.
The company will be required to pay a monthly premium for each key person covered by the Glacier key person insurance. The price will vary based on the figure provided by Glacier. Monthly premium payments must commence the month after the product is purchased.
Each key employee insured must be over the age of 18 at the time of application because the product is only offered to individuals who are over the age of 18. The Glacier key person insurance does not provide coverage for those over the age of 70.
How the Glacier Key Person Insurance works
By calling or emailing Glacier, a request can be made to enroll in their key person insurance. The main individuals who will be insured by the product must provide personal information to Glacier when submitting an application. Information on the corporation or business to which the insurance policy is addressed will also be needed. An underwriting procedure will be used during the application.
Each insured key person will be individually underwritten, and the amount due for each key person will depend on the results of that underwriting. The premium amount will be significantly influenced by the per-person cover amount. All key individuals will be covered by the Glacier Key Person Insurance following a successful application. To keep the product functioning, Glacier will require monthly premium payments.
Glacier may revoke coverage if premium payments are not made in time. As soon as the product is active, it covers natural and unnatural death. However, there is a waiting period for suicide. The plan also includes disability coverage. However, key personnel can also purchase disability coverage separately. A lump sum payout will be provided in the event that a valued employee passes away.
The covered amount will be the payout. The company must inform Glacier of the demise of a crucial person insured under the product in order to file a claim. The costs associated with losing a key employee can be covered by the lump sum payout. Since Glacier doesn’t specify which expenses a company must pay, it is up to the company to decide how to spend the payment money.
Advantages of Glacier Key Person Insurance
- A company or business can take out the product to cover any person they deem as a key person.
- The cover amount is adjustable based on the needs of a business should it lose a key person.
- Should a key individual pass away or become disabled, the insurance amount is distributed as a lump sum.
- The firm or business may use the payout money in whatever way it deems proper and acceptable.
- Should it choose to use the product, the company will be able to survive and will be able to afford the financial consequences of losing a key employee.
- Both natural and accidental deaths are instantly covered.
Disadvantages of Glacier Key Person Insurance
- Each person has to be underwritten individually. Therefore, the cost of insuring each person will be different.
- The product will be terminated and all contributions will be lost if premiums are not paid.
- High premiums will be required for those with preexisting conditions.
In the event of the loss of a key player, Glacier Key Person Insurance offers coverage that may be tailored to a company’s needs. It is possible to calculate the cover amount properly without having to over- or underinsure the company.