John started a tech company when he was 20 years old. Over the years he grew it into a multi-billion business that was consistently on the cutting edge of technology, introducing many industry-disrupting inventions. Even though John now employed thousands, he was very hands-on and had personally come up with most of their major breakthroughs.
John’s board of directors was concerned that if something happened to John, the company would suffer a tremendous financial loss. The board felt that a key man insurance policy was needed. A key employee life insurance policy is put in place to protect a business from losses if an invaluable employee dies.
The company decided to take out a very large life insurance policy on John, over his strenuous protests. John felt that he was in fine shape and would live to a ripe old age. Unfortunately, John was wrong. He suffered a major heart attack and died a few years after the policy went into effect.
Sales and the stock price immediately plummeted after his death, and the death benefit from the life insurance policy kept the company afloat for the next 12 months while the new CEO rebuilt investor trust and got the company back on track.
For more information, please contact me. I will be happy to help with whatever questions you have. www.rgwealthsolutions.com +6011-51565649
Comments