What Happens If Our Pastor Dies?

All ministries have key people who keep things running successfully with their ideas, know-how, experience, leadership, and most importantly their heart.

The unexpected death or disability of these vital employees is not only emotionally difficult, but can be very financially burdensome to the organization as well.

An insurance policy purchased by the ministry on the life of the “key person” can help mitigate the financial strain an organization may find itself in due to the loss of that key employee.

Key Man Life or Key Person Life (KPL) has been a strategy used by non-profit and for-profit organizations for many years.

Although the primary purpose of KPL is to insulate and protect an organization financially from the death of a key person, there are many other advantages to be had by the owner of one of these contracts.

I can list a myriad of fiscally responsible reasons for most every organization to have KPL, including:

  • Providing a financial cushion while seeking a qualified replacement.
  • Fund a search committee for new key employees.
  • Meet lending requirements of a bank or other financial institutions.
  • Offset decreased giving.
  • Keep from having to terminate other employees because of reduced giving.
  • Provide funds for relocating new key employees.
  • Assist the ministry in protecting its credit position.
  • Provide funds for survivor income payments.
  • Provide funds for the ongoing employment of other staff.

As vital as a key person is to any impactful organization, they take a back seat to not letting the vision or the movement be lost at the same time.

The benefits of owning a KPL policy if the unexpected happens cannot be overstated.

Ben Franklin is credited with saying, “In this world, nothing can be said to be certain except death and taxes.” Another advisor friend of mine says it’s the one guarantee that he can give ALL of his clients – they will die someday – it’s a certainty.

The only thing is that no one, for the most part, knows when that day is.

We can offer mortality rates and statistics all day long about how the average woman lives 81 years and the average man lives to age 76, and so many people will die due to car accidents, cancer, heart attacks, weather occurrences, and on and on.

Because it’s not an easy subject, I won’t go on anymore other than to say it’s a fact for all of us.

And when that day comes for a person that keeps the vision moving forward, the founder of a group of people that are changing a community, or the leader of a movement, those organizations with the foresight to prepare for that day are best equipped to keep the dream alive and growing.

KPL insurance plays a huge role in making sure that happens.

I will continue this subject in subsequent articles so you can understand further the nuts and bolts of the process.

I will spell out in detail the who, what, when, where, and why of KPL as well as how to best structure these contracts to benefit your organization

Feel free to contact me with any questions you may have about this subject. I am happy to help.