Insure Your Most Valuable Asset.

Buildings can be rebuilt and equipment replaced. But losing a key leader or top revenue generator can stop a business in its tracks. Key Person Insurance ensures you survive the transition.

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Survival Capital for the Unexpected

Key Person Life Insurance (or "Key Man") is a life insurance policy purchased by the business, on the life of a critical employee. The business pays the premiums and is the beneficiary.

If that person unexpectedly passes away, the business receives the death benefit tax-free. This infusion of cash is critical to offset lost revenue, pay off immediate debts, and cover the expensive cost of finding and training a replacement.

It is the difference between a business closing its doors due to chaos and a business having the resources to stabilize and move forward.

Who Is a "Key Person"?

Anyone whose absence would cause a significant financial loss:

The Owner/Founder: The face of the brand and strategy.
Top Salespeople: Someone responsible for 50%+ of revenue.
Specialized Tech Talent: Engineers holding unique IP knowledge.
Operations Directors: Those who manage day-to-day fulfillment.

How the Funds Protect Your Business

Hiring & Training

Replacing a top performer is expensive. You may need to pay executive recruiters, offer signing bonuses, and absorb the cost of lost productivity while the new hire gets up to speed.

Headhunter Fees
Signing Bonuses
Training Costs

Protecting Credit

Many banks require Key Person insurance (Collateral Assignment) before approving large commercial loans or SBA loans. It guarantees the bank will be paid back if the owner dies.

SBA Loan Requirements
Line of Credit Security
Creditor Assurance

Revenue Stabilization

If a top salesperson dies, revenue might drop by 40% overnight. The insurance payout acts as a buffer, replacing that lost income so you can continue paying rent and payroll.

Offset Lost Sales
Maintain Payroll
Calm Investor Fears

The "Buy-Sell" Solution

If you have business partners, Key Person insurance is vital for funding a Buy-Sell Agreement.

Without it, if your partner passes away, their shares of the company usually transfer to their spouse or children. You could suddenly be in business with your partner's family, who may know nothing about running the company or simply want to cash out immediately.

With a funded Buy-Sell agreement, the insurance payout gives you the immediate cash to buy those shares from the family at a fair price. The family gets financial security, and you retain full control of the business.

✔ Control: Prevents unwanted outside ownership of your company.
✔ Fairness: Ensures the deceased partner's family is compensated fairly and instantly.
✔ Valuation: We help coordinate the valuation to ensure the coverage amount is correct.

Discuss Buy-Sell Funding

Common Key Person Questions

Are the premiums tax-deductible?

generally, no. Because the business is the beneficiary, the premiums are not deductible. However, the death benefit is typically received tax-free, which is usually more advantageous.

What if the employee leaves?

If the key employee quits or retires, the business has options: 1) Cancel the policy, 2) Transfer the policy to the employee as a bonus (they take over payments), or 3) Keep it (if permanent insurance) as an investment.

Term vs. Permanent Insurance?

Term is cheaper and best for 10-20 year needs (like loans or until retirement). Permanent (Whole Life) builds cash value that can be listed as a business asset on your balance sheet.

How much coverage do we need?

A common rule of thumb is 5x to 10x the key person's salary, or the estimated revenue they contribute to the company. For Buy-Sell agreements, it should match the value of their ownership share.