Small Business Help Line
Is It a Good Idea to Take Out Insurance on an Employee?
Question: What do I need to know before I purchase life and/or disability insurance on a valued employee?
Answer: First consider: Do you have enough money in the bank or accounts receivable to weather the storm if a valued employee becomes sick or hurt and can't work for you anymore, or if that person passes away? Would a bank loan get you what you need, or would you have to tap into personal assets?
You may find it cost effective to purchase life and disability insurance on your key people...