Welcome to our first episode of Finance Friday, where we will be featuring some local financial planners, and providing some strategies to protect your family or business. Today we’re talking about how small businesses can protect themselves against the loss of a key employee. Watch the video below or read the transcript. If you would like to submit your own question, you can send an email to me at email@example.com , on our Facebook page, or contact us through the website.
“ John: Hey everybody, we’re here on Finance Friday, I’m here with Don Paulin of New York Life. It’s our first Finance Friday and I just want to introduce you guys to some financial planners in the area and hopefully you can get some great tips. So the first question I want to ask you Don is, how can a small business protect against the loss of a key employee? That can be a big issue for folks, some people may have a small shop and one or two people really bear the brunt of the load.
Don: Let’s use the example of an auto repair shop, they usually have 1 or 2 master mechanics. So if it’s a place that’s a mom and pop shop, they are not a chain, there’s one master mechanic who knows all things cars. He decides to quit, he gets hurt, or he just retires, the owner of that company now either has to try to find somebody to replace them or promote somebody from within. There is going to be a lack of experience. We have key employee policies made exactly for that, so the answer is actually in the question
John: So you can take out a life insurance policy on your employee?
Don: Absolutely, and it works several ways. Flexible, again you take it out on the employee and they leave, you use that money to: scout a new employee, get them through training and get them on the payroll. The other thing that happens with that is that key employee policy can be transferred onto that person that you just used as a replacement and it just keeps going.
John: Once again Don Paulin from New York Life. Thanks for coming to Finance Friday, I hope you enjoyed some of these great tips. Give Don a call by reaching the number below or click the link for some more info.
Don: Thanks John.
John: Thank you Don. ”
This video is part of an ongoing series dedicated to helping families and small businesses plan for success.
At Lapointe Insurance, we have a long history of working with all varieties of small businesses. That history gives us the unique experience and expertise to strategically manage your risks. Through a plan that includes loss control, safety planning, and insurance contracts, we can help keep your employees and patrons safe, while protecting your bottom line as well.
If you would like to speak with our MA or RI small business insurance specialists, please call us at (508) 678-8341 or click here to begin the process by email.
To reach Don Paulin at New York Life, call (401) 617-9944.