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KEY PERSON INSURANCE 

Key person insurance is the provision of protection to a business against the death and / or disability of a key employee. What makes a key employee is a subjective matter. Clearly, a salesperson who is responsible for the bulk of a company's income would be defined as a key employee, likewise a design or research individual who is working on key new product areas would again qualify. There are, however, many other fields in which an employee may be defined as being of special worth to the business.

THE NEED FOR KEY PERSON INSURANCE

Clearly, the need for key person insurance is the protection of the business against unforeseen circumstances. No business would carry on without ensuring that their property (computers, software, etc.) were protected by insurance. Statistically, it is just as likely that the staff who generate the income for the business will suffer an illness or injury that could be far more damaging to the health of the firm than the destruction of inanimate objects.

The death or disablement of a key person can lead to:

- Interruption or loss of existing and potential product sales. 
- Loss of confidence from existing or new suppliers. 
- Loss of competitive edge afforded by innovation or design expertise. 
- Special projects delayed or not completed. 
- Additional strain on remaining staff who have to cover for the missing key person. 
- Lowering of staff moral. 
- Large recruitment costs and head hunting fees to find a replacement.

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Securities offered solely through Ameritas Investment Corp. (AIC). Member FINRA/SIPC. AIC and Whitaker Financial Services are not affiliated. Additional products and services may be available through Patrick Whitaker or Whitaker Financial Services that are not offered through AIC. Securities products are limited to residents of California.

This is not an offer of securities in any jurisdiction, nor is it specifically directed to a resident of any jurisdiction. As with any security, request a prospectus from your Registered Representative. Read it carefully before you invest or send money. A Representative from Whitaker Financial Services will contact you to provide requested information.

Representatives of AIC do not provide tax or legal advice. Please consult your tax advisor or attorney regarding your situation.