Key Man Policies




Key Man Policies

Key man insurance policies are valuable assets that protect businesses from the financial impact of losing essential personnel, such as executives or partners. However, as business needs evolve, these policies can become underutilized or costly to maintain. A life settlement allows businesses to sell key man policies for immediate cash, transforming a once-strategic asset into liquid capital that can be reinvested back into the company or used for other financial needs.



Benefits of Settling a Key Man Policy

Settling a key man policy through a life settlement provides several strategic advantages:



Immediate Cash Flow

Converting a key man policy into a life settlement provides instant funds for business priorities like expansion, debt reduction, or reinvestment.

Optimized Asset Utilization

Selling an unneeded policy frees up capital, allowing it to be directed toward more productive investments.

Increased Financial Flexibility

For businesses no longer needing coverage, a life settlement enables adaptation to current goals like mergers or new initiatives.

Support for Succession Planning

A life settlement supplies funds for ownership transfers, buy-sell agreements, or retirement packages, supporting smooth transitions.

Reduced Premium Burden

A life settlement removes costly premium obligations, providing financial relief while capturing value from the policy.