Quite a few companies today are taking life insurance policies out on their key employees. Finding and keeping valuable employees is getting tougher these days.

Ask yourself these questions:

* What would happen if my top employee or manager were to suddenly die?
* Would I be able to find a suitable replacement within a reasonable time?
* Would my business suffer a major loss in productivity or income?

If the answer to any of these questions is yes, then you might have a problem. The good news is that there is a low cost answer. As a benefit to your business and to the employee, take out an inexpensive term policy on him/her. The face amount should be enough to carry your business through the rocky times until an adequate employee is found and give an immediate cash settlement to the employee’s family as well. It’s a way of saying, “Your spouse/parent meant a lot to us and we will miss him/her.”