Your browser settings have cookies disabled. Some features of the site are not available or will not work correctly without cookies. To do so, refer to the help section of your Web browser.

StateFarm Canada is now Desjardins Insurance

State Farm® Canada is now Desjardins Insurance and your local State Farm Agent will now be known as your Desjardins Agent.

Please visit desjardinsagents.com/change-from-state-farm-canada for more details.

Looking for the State Farm USA site? Visit it here: statefarm.com.

Your province

Skip to content

Key employee life insurance

Key employee life insurance, also called key employee valuation, helps protect the most important asset a business has—its key employees.

For full details about employee insurance, please contact your Desjardins Agent.

How key employee life insurance can help

Key employees have many distinguishable characteristics, notably:

  • They have specialized skills that are critical to the success of the business.
  • They have a significant client base that might leave the business if they were to die.

When a key employee dies, the business needs cash to:

  • Cover the expense of finding, recruiting and training a new employee.
  • Continue long-term development programs which may be jeopardized by the death of the key employee.
  • Reassure creditors and customers the business will continue.

There are two primary key employee valuation methods to determine how much employee insurance is needed:

  • Estimate the cost of finding, recruiting and training a replacement. These costs would include employment agency fees, moving expenses and time spent interviewing and training the replacement.
  • Determine the amount of profit brought to the business each year by the key employee and how many years it would take for a replacement employee to perform at the same level of competence.

The annual premium cost of key employee life insurance is often a small fraction of the death benefit, which is generally received tax-free.

The products described here are manufactured and issued by Desjardins Financial Security Life Assurance Company.

Find an agent

Search
Top of page