Each and every product or service is sold on goodwill. You have created that by intelligent, effective working and incurring heavy expenses to gain faith of customers. This is now paying multiplying results to your organization.

For the effective working of the business: its profitability and continuity (its very existence), the protection of each and every asset – human, non-human and intangible – is most important.

Loss of Non-human Assets :

The losses of Non-human assets like Equipment, Buildings, Machinery, and Vehicles etc. are generally insured due to Institutional Insistence on Adequate Coverage.

Loss due to “Exit” of Human Assets :

The Exit of Key-Person/Persons is generally overlooked. The Exit can be due to any reason like:

• Resignation
• Retirement
• Temptation by competition offering better prospects Disability
• Death

Exit will cause untold hardship to the organization. Possibility of Disability and Death is always without notice. What will be then the fate of the Organisation?

On the exit of any Key-Person :

His activities will stop, resulting in direct and consequential losses i.e. if the Key marketing man is no more; there will be adverse effect on sales. The production will have to be reduced; earning will reduce because the fixed expenses will remain the same. In addition, substitute (Key man) will mean cost of Recruitment, Training, Early mistakes, loss of hard-earned goodwill. This will affect liquidity of the Company adversely. W ith the adequate Key man Insurance the losses can be met.

On the exit of Main Key-Person / Owner, :

The situation will be more critical because the main decision maker, profit center, and the very heart and soul of the business will be missing and hence monitoring will stop all the activities and losses will be very high.

In both eventualities profits will decrease and expenses will increase. Suppliers and purchasers may cancel the orders. There will be pres sure from creditors, bankers and investors to clear their liabilities. Survivors of the deceased may demand immediate payment of their dues. Employees, including key-persons, may quit and demand immediate settlement of huge dues. That apart, large amounts will be required to discharge statutory liabilities like Income Tax, Sales Ta x, and Excise duty etc.

In the meantime, the precious goodwill will have been totally lost.

Therefore Key Man Insurance covering loss of Income, the financial obligation, will be very timely in the event of the calamity.

Million Dollar Question:

How much money is needed ?

How much will be the loss to be covered :

• Actual loss
• Fixed Expenses and overheads
• Most important goodwill
• Other consequential losses
• Moneys required for immediate payments
• Loss of Profit and Projected profit? How many years Profit ?

From where to get that amount ? ( In such a critical and uncertain circumstances )

Nobody Finances The Firm Whose Owner / key-person is no More.

I have a scheme :

“The day you/your Key-Men walk out, the required amount will immediately flow in”, which will come to the rescue of the firm – by providing necessary finance for assured profitability and continuity of the company.

How much this scheme will cost ?

In fact this scheme does not cost any thing. The amount is just an investment in the name of the organization itself with L.I.C. of India which, in turn, will guarantee insured amount on the death, and fetch rich returns on premium.