Key Person Disability Insurance

What’s Key Person Disability? Key person disability insurance is fashioned to safeguard a Colorado business if a key person cannot work due to disability from a sickness or from being injured. A key person is a manager, executive, high level salesman, or important employee. Like key man life insurance, this policy works to compensate a business to cover the loss of that key person, except in this case the employee is only disabled. This compensation allows for normal operations to continue.

Key Man Disability Insurance Policies

Key man disability insurance policies are placed on groups of key employees or a single key man within a business. This disability insurance protects the company from the financial loss. The financial loss is directly tied to the contributions of the key individual that the policy covers. In many cases, a key man who is disabled must be replaced, the benefits could be used to locate and train a replacement. It may be used to attract a new top performer with a bonus cash incentive. Disability benefits could be used to keep clients or attract clients who left as a result of the loss. The influx of cash from the policy proceeds can be used in any way that stabilizes the company.

Key Person Disability Policy Options

Key person disability plans are not always attainable with traditional disability income insurance brokers. Some insurance agents may not have all the needed options and features available. Key person disability policies are usually custom tailored specific to the business. In general, these disability plans guidelines assume a key employee can be replaced within two years. Disability benefits are paid out monthly or a single cash payout depending on the policy options.

Key Person Monthly Disability Benefits

The monthly disability payment option says that after the waiting period of 1 - 3 months, disability payments are paid out monthly for the predetermined amount of time that is indicated in the policy which is generally half of a year to two years.

Key Person Single Cash Payout Disability Benefit

A single cash payout option calls for a longer waiting period, which is generally 1 year. After that, the disability benefits are paid out if the key person is still disabled and cannot work.

Key Person Disability Insurance Quote in Denver, Colorado

Speak to a Colorado insurance agent at DCInsurers - Mountain to the find right Key Person Disability Insurance Policy that meets your business needs. For Immediate Service Contact Kevin Krupka 720-974-1702 or fill out the key person disability quote form below.

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