Key Person Insurance
Key Person Insurance, also known as key employee insurance, is coverage that protects your small business in case of an untimely death of the business owner or top-performing employee. The business pays for the policy and it is also the beneficiary (and/or owner) while the employee is the insured. The life insurance proceeds could be used to help offset the financial loss that may occur in the event of the death of a key employee. This coverage offers peace of mind to business owners like you.
The ACS group term life, 10-year and 20-year level term life insurance plans can serve as a Key Person insurance policy for ACS member business owners. The applications for coverage allow you to designate the beneficiary of your choice and/or assign an owner other than yourself. For Key Person Life insurance you can choose one of the following arrangements when applying for coverage:
- You designate the business to be your beneficiary. You are the owner of the policy and pay the premium.
- You designate the business to be both the policy owner and the beneficiary. The business pays the premium.
If you are currently covered under one of the ACS Life insurance plans you can complete a change of beneficiary form and/or assignment of ownership form to designate your business.
To learn more about Key Person Life Insurance contact the ACS Plan Administrator at 1-800-752-0179.