Category Archives: Key Man Insurance

Key Man Insurance vs Key Woman Insurance

Key Man Insurance

“People Are Key”

Are you a key person in your business? Then which is better, Key Man Insurance or Key Woman Insurance?  Well, some may advocate that Key Woman Insurance costs less than Key Man Insurance, so at the very least, that makes it more cost-effective.

“The cost difference is due to a favorable gender bias in the mortality tables used by most actuaries for California residents.”

Others argue most new business start-ups are founded by women, and the majority have not secured this protection; therefore, Key Woman Insurance is more important. Whether we call it Key Man, Key Woman, or Key Person Insurance, is not the issue; further, whether the key role is performed in a business setting or family setting is not material, since the problem is the same. [Read further about what can go wrong with Key Man Insurance]

Key Man Insurance vs Key Woman Insurance

Key Man Insurance (Key Woman, Person etc.) helps mitigate a bad situation by sponsoring some transition or adjustment time. The ultimate goal is to increase the probability of business (or family) financial survival.