So, would you? Would you seriously consider buying life insurance for key member(s) of your organization?
Twice in the past, I have made the recommendation to senior management, to seriously consider purchasing life insurance for a particular individual. The recommendation was to insure the individual’s life according to the amount of impacted revenue they represent.
In one case, we had a network licensing guru through whom almost every major enterprise sale flowed at some point. When the field staff could not overcome a deployment issue, or the licensing wasn’t working as designed, he was the one go-to person worldwide. While no one is irreplaceable, his unplanned permanent loss would easily jeopardize, or delay, millions of dollars in revenue. What’s a few thousand dollars a year against that very real risk? An alternative is to hire additional staff. Yet in these lean times, how does the addition of another $100K+ staff expense compare against a few $K for life insurance, offsetting the time and expense needed to recover?
As you might have expected, in both cases, the responses were as expected. Basically a laugh, like it’s an inside joke, “yep, you’re right, but…”
Talking with Joanne Giardini this morning, an independent agent and friend at NuStar Insurance Agencies, she agreed, “…the hole created by the loss of one very important person/function can be detrimental to a biz.” She’s working on a $5M policy for a client right now, that will cost less than $5K/year.
Something worth thinking about.
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