What type of policy should an architecture firm purchase on its project manager to mitigate financial loss in case of death?

A Key Person Life Policy is the appropriate choice for an architecture firm looking to protect itself financially in the event of the death of its project manager. This type of insurance is specifically designed to cover the financial losses a business might experience due to the loss of a crucial employee whose expertise is vital to the company’s functioning.

By purchasing a Key Person Life Policy, the firm can ensure that it has the necessary financial resources to manage the transition, cover any potential loss of revenue, and find a suitable replacement. The death benefit paid out by the policy can help the firm address the immediate financial impact, such as lost contracts or client relationships, which might result from the absence of a key individual.

While whole life and term life policies provide life insurance coverage, they are not tailored to the specific needs of a business for mitigating financial risk related to losing a key employee. Group life policies generally offer coverage to a group of employees without addressing the specific needs that arise from losing an essential staff member. Thus, the Key Person Life Policy stands out as the most fitting solution for this scenario.