Key Person Life Insurance

Do you have any employees who if they left the company would cause a significant financial loss to your company? Key Person Life Insurance is an insurance policy that provides funds to a corporation against the loss of a key person resulting from death.

How does Key Person Life Insurance work?

Your company purchases life insurance on the key person's life. The company becomes the policy owner, beneficiary and premium payer. Should the designated key person pass away, the death proceeds are paid to your business, so that you can sustain operations during the transition period and find a replacement for the key employee.

Advantages of Key Person Life Insurance

  • Helps you cover the loss of talent provided by the key person.
  • The cash value of the life insurance policy is an asset to your corporation.
  • The cash value grows tax-deferred and can be accessed by the business.
  • You can pick and choose whom you want to cover.