Key Person Insurance
If one person drives your sales, runs operations or holds key relationships, losing them could put the business at risk overnight. Key person coverage gives the business money to recruit, cover lost revenue and reassure lenders. We start with how that loss would affect revenue, loans and hiring, then compare companies and size it to that person's value. Call or text and we'll talk through what that person means to your business.
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Who It's For
Is Key Person Right for You?
- Businesses that depend on one owner's relationships or skills
- Companies with loans that require it
- Partnerships and family businesses
Good to Know
Before You Buy
Key person coverage protects the business, so ownership and taxes are set up differently than personal life insurance. We go through each with you before you apply.
- Several companies. We compare several companies and explain your options in plain English or Spanish.
- Ownership. The business owns the policy, pays the premium and is the beneficiary.
- Taxes. Premiums are generally not tax deductible, and benefits are generally received free of income tax when IRS notice, consent and reporting rules are followed. Check with your tax advisor.
- Loan requirements. Lenders sometimes require key person coverage as a condition of a loan.
- Benefit amount. The amount is often based on the person's salary, the revenue they bring in or the cost to replace them.
- Policy type. Term is common for a set loan or contract period. Permanent coverage can build cash value the business may use later.
Pair It With
Gaps Business Owners Often Miss
Key person coverage protects the business from losing someone. These are the gaps we check for when we talk with you.
Partners Need a Funded Buy-Sell
If a partner passes away, life insurance is often how the agreement gets paid for.
Lawsuits Need Liability Coverage
A customer injury or damaged property can lead to a lawsuit. General liability covers it, plus your defense.
Employee Injuries Need Workers Comp
Injuries to your own employees fall under workers comp, which most states require once you have employees.
Your Building and Equipment Need Property Coverage
Fire, theft and storms hit what keeps the doors open. Property coverage protects your building, equipment and inventory.
Owners Need Personal Coverage Too
Business coverage pays the business. Your family needs its own life policy.
Data Breaches Can Shut a Business Down
Most liability and property policies exclude cyber events. A cyber policy helps pay for the response.
More Life Insurance
Other Life Options
Compare Key Person Options.
Final approval and pricing are set by the insurance company after you apply.