Key Person Insurance is simply life insurance on any key person involved in your business. In a small business, this is often the owner, or perhaps an employee critical to the company's success. These are the individual who are crucial to the success of a business--the ones whose absence would sink the company. You definitely need to consider key person insurance on those people. They can be both a term plan for a specific period of time or a Life Insurance Retirement Option that can provide both benefits to the company and to the future of the employee.
Other Features of Key Person Insurance
The death benefit can be used to recruit and develop a replacement for the previous key employee
Coverage is a business asset that enhances your company’s creditworthiness for commercial borrowing
The policy’s cash value (if any) may be available to your business through a withdrawal or loan if needed
The business pays the premiums, and they may be tax-deductible as a business expense (always seek out the advice of your licensed tax professional for any tax questions in your state).