Business owners have a lot to keep track of every day, and it’s important to take the time to plan for the unexpected. In the unfortunate scenario that an integral employee passes away, a company can be left scrambling. Key person insurance is a valuable tool to ensure a business doesn’t fail after the unexpected loss of a vital employee.

Key person insurance compensates a business for any financial losses associated with the death of a top employee. It can protect a company—especially a newer one—from complications if a business is left without one of its most important people. But, for some companies, implementing this tool can be a little more complicated.

The challenge arises when a company has to use working capital to pay the premiums for key person insurance. Even if the company has significant cash flow to pay the premiums, the outlay leaves the company without capital reserves or excess funds to invest back into business growth. This is considered lost opportunity for the business.

The solution here is premium financing. Premium financing provides relief from large premium payments for necessary life insurance for both individuals and businesses. A business can pay the life insurance premiums with third-party financing at a lower interest rate, freeing up working capital for business expansions and core strategic initiatives. It’s a great option to protect the business during the unexpected, without slowing down growth, allowing for continued investment back into the company.

To learn more about key person insurance or life insurance premium financing, please visit wintrustlife.com.