What is Key Person Insurance?

Key Person Insurance is a life (or disability) insurance policy a business takes out on an essential employee or owner. The business pays the premiums and is the beneficiary, meaning if that person passes away or is unable to work, the company receives a payout.

Imagine this: You’ve built a thriving business, but what happens if a key employee, partner, or even you—someone critical to daily operations—suddenly can’t work due to illness, disability, or death?

Why does it matter?

✅ Covers financial loss from the absence of a key player
✅ Helps with hiring and training a replacement
✅ Protects business loans and investor confidence
✅ Ensures business continuity

Ideal Candidates for Key Person Insurance:

• Business owners and co-founders

• CEOs, CFOs, and other top executives

• Key salespeople responsible for major revenue streams

• Highly skilled specialists or technical experts

• Business partners with financial obligations

• Entrepreneurs with significant business loans

• Small business owners in industries where relationships drive success

• Any company where one or two people are the backbone of operations