Pastor Key Man Insurance – Pastors also require life insurance to protect their church and their family. What would happen to your church if the pastor unexpectedly died tomorrow? What would happen to the ministry? Would most members of the congregation leave? Would giving decline due to lower membership? Would the church have the ability to pay the bills and salaries?
That’s where a Pastor Key Man Insurance policy is important. A Key Man Insurance policy provides the necessary funds needed to allow the church members to keep the church operational by paying bills, loan payments, and employee salaries. It also allows for time for search for a new pastor who could provide the financial support as the deceased pastor.
How Does Pastor Key Man Insurance Help Churches
Leader’s Successor – the search to find a charismatic speaker is a gigantic task and takes an extraordinary amount of time and effort. A Key Man Insurance policy allows for the proper time to conduct a meaningful and exhaustive search for the church’s successor.
Combating The Decline In Giving – One of the key aspects of the pastor is the move and motivate the congregation with an inspiring and uplifting message that provides members with a sense of purpose and adoration of faith. This is a divine gift that is not given to everyone. A Key Man Insurance policy provide the proceeds while a replacement is found.
The Ability To Pay Financial Obligations and Loan Protection – In a Pastor Key Man policy, if set up correctly, the church is listed as the owner and beneficiary of the policy. Upon the untimely death of the pastor, the policy would provide funds to operate the church and to offset decline giving. Banks also require a key man policy to secure new loans and for existing loans. The set up of the beneficiary and the owner is not straight forward when a lender is involved. To ensure the contract is established correctly, a industry expert is required. Someone with more than 10 years of industry experience is advisable in this complex area. Remember, not all insurers accept collateral assignments which is a key element in setting up a key man insurance policy involving a lender.
Types of Pastor Key Man Insurance Policies
Typically term is used for Key Man policies, but many churches are opting for coverage that will return the premiums paid if an untimely death does not occur. Of course, this is the ideal situation. The pastor is covered but the premium is returned after the term.
To explore the best options for your church and to determine the amount of insurance needed, please contact Qwik Life Insurance Services today at 1-800-241-6544 or complete the application request form. We’ve have been helping churches for over 20 years. We are the leading Key Man Insurance firm with 1,000’s of satisfied clients.