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).