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Key Person Insurance

Protect Your Business From Losing Its Most Important People

Key person insurance helps your company keep going if an owner, partner or top performer passes away. We help you identify your key people and compare coverage from A-rated financial companies.
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What it is

Coverage that protects the business itself.

Key person insurance is a life insurance policy that your business owns, pays for and is the beneficiary of. It covers someone whose loss would seriously affect the company, such as an owner, partner, top salesperson or specialist.

If that person passes away, the business receives the benefit. It can help cover lost revenue, repay loans, recruit and train a replacement, or keep things running while the team adjusts.

Owned and paid for by the business
The business is the beneficiary
Covers owners, partners or top performers
Helps protect revenue, credit and continuity
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Key features

How key person coverage works for you

Six ways key person insurance helps keep your business strong after an unexpected loss.

Protect key people

Cover the owners, partners or specialists your business relies on most.

Replace lost revenue

Help offset the income lost while the business recovers.

Reassure lenders

Show banks and investors the business can carry on.

Fund a replacement

Cover the cost of recruiting and training someone new.

Support partners

Give remaining owners time and resources to plan next steps.

Term or permanent

Choose affordable term coverage or permanent coverage with cash value.

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Benefits & considerations

The full picture, before you decide

Key person coverage can be a lifeline for a business, but it needs to be set up correctly. Here’s an honest look at both sides.

Benefits

Helps the business survive the loss of a key person
Protects revenue, credit and customer confidence
Funds recruiting and training a replacement
Gives owners time to make good decisions
Coverage can be sized to your business needs

Things to consider

Premiums are generally not tax-deductible
Notice and consent rules must be met for the benefit to be income-tax-free
The insured person must agree and may need a medical exam
Coverage should be reviewed as the business changes
It protects the business, not the employee’s family

Why it matters

Every great business is built on great people. Planning for the loss of one of them is how you protect everyone else who depends on the business.

FAQ

Key person insurance questions, answered

Still have questions? Book a free consultation and we’ll help you identify your key people and the right amount of coverage.
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Who should be covered?
Anyone whose loss would seriously affect revenue or operations, such as an owner, partner, top salesperson or someone with specialised skills or client relationships.
How much coverage does my business need?
Common approaches look at the person’s contribution to profits, the cost of replacing them and any business debts. We’ll help you estimate a sensible amount.
Is the death benefit taxable?
Proceeds are generally received income-tax-free when IRS notice and consent requirements are met before the policy is issued. Premiums are usually not deductible. Please confirm details with your tax professional.
What happens if the key person leaves the company?
Depending on the policy, the business may keep it, surrender it, or transfer it, sometimes to the employee. We’ll explain your options.
Is this the same as a buy-sell agreement?
No, but they often work together. A buy-sell agreement sets out what happens to ownership, and life insurance can help fund it. We can coordinate with your attorney.

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