Key person insurance
Protect the people who make your business work
What key person insurance actually does
Key person insurance is straightforward. Your business owns a policy on a critical employee or owner. If that person dies, the company receives the death benefit tax-free. You use it to cover lost revenue, recruit and train a replacement, or pay down debt.
Covers lost revenue during transition
Funds recruitment and training costs
Protects business credit and obligations
Growing firms
Businesses with one or two essential people carrying most of the revenue.
Partnerships
When a partner's death could destabilize the entire operation or trigger forced buyouts.
Family businesses
Succession planning requires protecting the business while the next generation steps in.
Why it matters
The three pillars of key person protection
Business continuity without panic or forced decisions
Death benefits give you breathing room to find the right replacement and keep operations steady.
Protects your credit lines and lender relationships
Lenders know the business can meet obligations even if a key person is gone.
Funds smooth transitions and planned ownership changes
Whether you're buying out a departing partner or grooming the next generation, the policy funds it.
We identify who matters most to your business
We look at revenue streams, client relationships, technical expertise, and management depth. This tells us who would hurt the business most if they were gone.
We calculate the right amount of protection
Coverage should reflect what that person's loss would cost you—lost revenue, recruitment, training, debt service. We size the policy to cover the real financial impact.
We handle the medical and financial review
The insurer will want health information and business financials. We manage the process so it moves smoothly and you get the coverage you need.
Your policy is in force and your business is protected
Once the policy is approved and funded, you're covered. We review it annually to make sure the coverage still fits your business as it grows.
Questions
Everything you need to know about protecting your business
Key person insurance is a life insurance policy owned by your business on the life of a critical employee or owner. If that person dies, the company receives the death benefit to cover lost revenue, recruit and train a replacement, or pay off business debt.
Any business that depends on specific individuals—whether it's a founder, top salesperson, technical expert, or essential manager—should consider it. The larger the business, the greater the financial risk of losing a key contributor.
Coverage should reflect the financial impact of losing that person. We calculate this by looking at lost revenue, recruitment costs, training expenses, and any debt obligations. Most businesses need between one and five years of that person's salary.
No. When the business is the owner and beneficiary of a key person policy, the death benefit is received tax-free. This makes it one of the most efficient ways to protect your business financially.
Absolutely. Key person insurance and buy-sell agreement funding work well together. One protects the business from losing a critical employee; the other funds the buyout of a departing owner's share.
You can surrender the policy, reduce the coverage, or convert it to another use. Some businesses keep key person policies in place for decades as a permanent business asset and source of tax-free capital.
Still have questions?
Our advisors can walk you through the details
Protect your business's future
A key person policy is one conversation away. Let's talk about what your business needs.