You try to protect your business against as many risks as possible. But when it comes to key
employees who are critical to your company’s success, there might be more risk than you think.
The death or disability of a key employee can reduce the earning power of any business in the
short run. For smaller businesses, it can have a more dramatic effect, and even threaten the
company’s stability if it happens at the wrong time. This can also be true for other key
contributors such as co-owners or board members.

Addressing these risks with insurance is simple in theory, but determining the right kind of
coverage for each key person requires careful analysis, best undertaken with the assistance of a
trusted financial professional with specific training in this area.

Having the foresight to protect your business against the loss of a key employee – perhaps a
company’s most valuable asset – can mean the difference between business as usual and
closing up shop. Some important questions need to be faced in order to ensure the business can
continue and thrive if the unexpected should occur:
• What value does the key person bring – creative genius, sales acumen leadership qualities?
– and what are those characteristics worth to the business?
• How much revenue could be lost before a replacement can take over the role?
• How much will it cost to recruit and train a replacement?
• Will clients lose confidence in the company?

With the help of a trained professional, you can estimate the financial impact on the business of
these and other factors, and put in place effective life and disability insurance policies, as well as
appropriate legal agreements and/or trusts as needed, to help ensure those costs are covered.
No one wants to imagine the worst. But making a plan for your business to survive is always a
good decision.

© 2011 Massachusetts Mutual Life Insurance Company.

Insurance products issued by Massachusetts Mutual Life Insurance Company, Springfield MA
01111-0001. These polices have exclusions and limitations. For costs and complete details of
coverage, please call me at (858) 538-9858.

The information provided is not written or intended as specific tax or legal advice and may not be
relied on for the purpose of avoiding any Federal tax penalties. MassMutual, its employees and
representatives are not authorized to give tax or legal advice. Individuals are encouraged to seek
advice from their own tax or legal counsel.

CRN201301-144243

Provided by Josh Farmer, a financial representative, who represents MassMutual and other companies; courtesy of Massachusetts Mutual Life Insurance Company (MassMutual) (California insurance license number: 0D86987)