Key person insurance is a life insurance policy owned by your business on the life of a critical employee or partner. If that person dies, the business receives the death benefit to cover lost income, find and train a replacement, or pay off debts. It protects the company's financial stability during a difficult transition.

A buy-sell agreement is a contract between business partners that outlines what happens if one partner dies or becomes disabled. Life insurance funds the agreement, allowing the surviving partners or the business to buy out the deceased partner's share from their family at a predetermined price. This keeps the business in the right hands and prevents forced sales or family disputes.

In most cases, premiums for business-owned life insurance are not tax-deductible. However, the death benefit is typically received tax-free by the business. We recommend discussing the specific tax implications of your policy with your accountant or tax advisor to understand your situation fully.

The right amount depends on your business structure, partnership agreements, outstanding debts, and the financial impact of losing a key person. We analyze your specific situation during a consultation and use industry formulas to calculate appropriate coverage. Our business insurance calculator can give you a starting point.

Business insurance is owned and paid for by the company and protects the business itself from financial loss. Personal life insurance protects your family's income. Many business owners need both. Business insurance ensures continuity and protects your partners and employees, while personal coverage protects your family's lifestyle.