What Is Key Man Insurance? Worth It? Premiums & Benefits

What is Key Man Insurance?

Key Man Insurance is a policy that is essentially life insurance on an employee of a company. Often times higher or senior employees, however – some times the policy is purchased on just average employees as a risk vs. reward policy to mitigate losses from previous and replacement, training and investment.  Obviously the policy can have other uses..

Is Key Man Insurance Worth it?

The insurance really needs to be broken down by the senior employees of a company or purchaser / business owner.

You need to calculate cost of the insurance after you determine how much insurance would be needed in a situation to replace a key person at a company.   Often times the worth isn’t determined until the insurance is used, but their is a safety net that is completely worth it in situations where someone can’t be replaced easily at all without spending a lot of money.

Some companies will lose one employee and the cost to the company to re-hire, train and offset additional costs from losing that employee can go into the hundreds of thousands of dollars or even more.  Depending on the position, payouts from any benefits to that employee, new hire payments for stock options or incentives, new training costs, etc…

My personal situation is different, but I should explain it.

I created a some what successful internet marketing company and there is one problem I run in to.  I am a married man with a company that would need a new key leader in the event I pass away to help manage the business to provide quality leadership so income can continue for my family in the event I pass away.  This isn’t a large company, however – I can foresee issues if there is no money sitting to hire key help in the event I am gone.

My concern is this, selling the business would be the best option without a new leader.  Ultimately the business model I am in is able to obtain recurring revenue that’s very valuable – without the correct leader the business would need to be sold costing my family long term.

I also spent time lining up potential candidates that should be approached if I were no longer here.  Since I know the business personally and have met many other individuals in this niche – I was able to put together a list of people I would want to take over that could run the business effectively.  The problem I run into is that most of the individuals I would want to run the company are pretty successful in their own lives.  So it would be very difficult to take away valuable equity in the event I pass away to hire a qualified leader.  With a Key Man Insurance policy I am able to have money for a sign on bonus and a more valuable performance bonus along with pay that’s good enough to lure them in.

Joel McLaughlin
Joel is the owner of Dataflurry.com an Internet Marketing agency.  A large number of our clients are Law Firms and individual Lawyers.

7 Money Mistakes to Avoid While Traveling Abroad

You may be exhausted with your daily, monotonous life. You might have

9 Ways to Save Money on Travel!
9 Ways to Save Money on Travel!

planned to travel abroad, but there are specific tips that you need to follow for a safe and happy trip.

Apart from the itinerary and suitcase, you need an effective and efficient financial plan to avoid the common yet costly money mistakes while traveling abroad. Another thing you should keep in your mind is the transportation.

When you are traveling frequently and at odd hours, you may need a car to take you back. This is where airport parking lot services come in handy. If you are traveling to and from Philadelphia, you can easily use the Smart Park services. You can also choose the chauffeur service, especially if you are going on a family holiday.

#1: Forgetting to Let Your Bank Know 

You might well have forgotten to intimate your bank about the travel plan, and the thought might cross your mind once your flight lands abroad. But that would be too late to put you in an awkward position. These days most banks have zero lag time to spot the location of usage of debit or credit cards, and your card might be blocked in the first swipe in the foreign nation. This would leave you stranded among unfamiliar people.

#2: Not Adding International Roaming Plan for Your Phone

You might be traveling, and usage of the internet would be minimum. But the few email checks and browsing the map to get around can cost you a fortune if you are using your base mobile plan. It is always better to opt for an international roaming plan as per your service provider and avoid this costly mistake.

#3: Carrying Traveler’s Check

You might have spent a generous period to obtain these traveler’s checks to meet up the expenses in a foreign land, but the traveler’s check is not accepted everywhere. Obtaining a traveler’s check is neither cheap nor easy. You have to spend a long time in the bank to obtain them but does not find fruitful application while you travel. Instead, credit cards are more acceptable.

#4: Assuming on How Much to Tip

The custom of tipping varies from place to place. Not having sufficient knowledge of tipping at your destination can be expensive and awkward at times. In certain countries like Brazil, the customary ten percent tip is already included in restaurant bills. Of you were ignorant of this fact, you might have ended up paying double. It is always better to research the tipping practices prevalent at your travel destination before your trip.

#5: Leaving Valuables Unsecured

This is the most common mistake that you might commit while being abroad. Leaving all your cash in the wallet is not a good option. Rather you can secure your valuables by keeping them at different places. You can also carry your backpack in the front to avoid pickpocketing in crowded buses or trams.

#6: Using Public Wi-Fi for Financial Transactions

To your phone bill, you might be induced to use the public Wi-Fi to make online financial transactions or view bank balances. Even certain hotel Wi-Fi systems are spooked with keystroke loggers by hackers, and that leaves you vulnerable.

#7: Exchanging Currency at First Airport Kiosk

When you visit a foreign land, you do need the local currency. The biggest mistake is exchanging money at the first kiosk that you see at the airport. Instead, head for an ATM or bank where you can get competitive exchange rates. Even you can use the universal currencies like dollar or euro as most departmental stores accept them.

Check out the following related:

Travel Hacks | Travel Tips | Travel Ideas

 

Wrapping Up

If you can follow these tips, you can effectively reduce your financial burden and enjoy the trip. By avoiding these mistakes, you can reduce the financial hassles and enjoy the trip.

 

7 Money Mistakes to Avoid for Better Travel Experience

Traveling rejuvenates your mind and body. With the daily chores, professional hazards, agony, and stresses, a tour can be helpful to calm your mind and refresh the body.

The foremost thing that you should do before you travel is planning. You should go into the details of packing or deciding the itinerary. The booking of hotels and tickets also involves a lot of planning.

You may have your own set of rules while traveling, but you should also consider the budget of your tour. Effective planning can make you avoid costly money mistakes, and you can save the same for your next trip.

 #1: Effective Travel Plan

If you are traveling to multiple destinations, instead of sleeping the night at a posh hotel, you can travel during the night. The customary thought is moving during the day, but you can opt for a night bus or train to travel and save your budget. There are travel plan tools available as well!

#2: Eating Near (not at) Popular Tourist Attractions

The popular tourist attractions are always crowded. The restaurants and cafes near tourist spots offer low-quality food and are expensive. It is better to do a thorough survey before deciding on the place to eat. Before you travel, you can check on the internet bout the available eateries.  

To avoid the trap and lose extra money, you can also approach your hotel concierge for recommendations. You can also try eateries where the locals visit.

 #3: Using a Taxi or Car Rental to Go Around

Before you invest in hiring a car rental or a local taxi, go through the various modes of transport available at that destination. Apart from cars, you can opt for buses, trains, trams or metro rails to go around the city. Even you can choose car-pooling, which is cost-efficient. You can travel along with fellow tourists and save big. For example, if you are in Philadelphia, you can use Smart Park for shuttle or valet service. You can also travel to and from the airport with the help of Smart Park’s facilities. 

 #4: Exchanging Money at Airport

If you are traveling to foreign nations, avoid exchanging money at the airport. The currency exchange booths at the airport have less competitive rates and often charge service charges. You can exchange the currency at the reputed financial organization.

 #5: Keeping All the Money at One Place

If you are carrying cash, never keep it at the same place. You can split the money and keep at your backpack or wallet or in the luggage. If you are traveling alone, keeping the cash on the person is the best option. The money can be hidden at different points to avoid robbery or pick pocketing.

 #6: Using the Regular Debit or Credit Cards

Cash-free transactions in the form of debit or credit cards are always convenient and flexible. Your bank might charge at least 2% to 3% per transaction that you do with your plastic money in foreign nations.

 The best way to avoid this is o inform your bank about your travel plans. Banks have different schemes for transactions in a foreign land and may provide you with a viable solution to wade of the extra charges.

 #7: Not Taking Travel Insurance

Not only does travel insurance covers medical issues during travel, but it also provides cover for travel losses. Be it the loss of luggage, injury, illness, holiday cancellation, or travel delays, the travel insurance is here to give you stress-less travel.

Right for You

If you love to travel, you should also consider looking for deals to save your money. Avoiding these money mistakes, you can stop the drain of money and invest big on your travels. When flying from PHL Airport, find discount PHL airport parking rates from SmartPark Philadelphia. That way, you’d be able to enjoy more tours and have a better experience.