If the key man dies the claim would be given to Employer, if employer also dies to whom the claim amount will be given
If the 'key' man dies how are we going to get in or out of the door?
Seriously this doesn't make sense...more information, re: what kind of claim? what is key man, and the employer have to do with each other etc..???? _________________ Have you been helped by a poster? Do you want to show your appreciation? YOU CAN !! Just simply click on the donate button and send them some coin!
I have searched about the keyman that you have mentioned and I have found out about Keyman insurance.
Quote:
Keyman Insurance represents a group of insurance plans all designed to financially protect business from the affects of prolonged illness or even death of staff who are central to the prosperity of the business. The insurance can't replace people but it can provide cash to buy time and cover the costs of temporary staff, recruitment, loss of profits or provide a cash injection.
Keyman life insurance is life insurance on an employee that holds a key position in the company. Usually the beneficiary is listed as the company or owner thereof. If the employer dies, then to the employers' estate most likely.
HI NMS
First for our other posters - Keyman insurance is life, disability or critical illness insurance owned by an employer insuring an employee. The insurance is on a key person without whom the business would suffer. For example: the best salesperson with great client relationships; an accountant with strong relations with lenders; an engineer with special product knowledge. It is most common to purchase key man life insurance which NMS is asking about.
The insurance proceeds give stability while the company adjusts. The death of a key person can result in lost sales, decreased morale, lenders calling loans etc...
Now to answer NMS ...
If the Keyman dies and the employer dies then the money would still go to the business since it was the owner. If the business is a corporation it is still "alive" after the owners death. If the business was a sole proprietorship the benefit would likely go to the estate of the business owner.
There may be different rules in different states or Provinces that would impact the beneficiary after death of the policy owner ... but this is how it would most commonly work out.
Hope that helps! _________________ Register Now to have your Insurance queries solved.
