Running a business is already hard work, but what if your partner or top employee suddenly couldn’t work or passed away? Key Person Insurance protects your company from financial loss in situations like these.
What Is Key Person Insurance?
It’s a life insurance policy your business takes out on a critical employee or owner. The business is the beneficiary and uses the payout to:
- Replace lost income
- Hire and train a replacement
- Pay off business loans
- Keep the business stable
Who Is Considered a Key Person?
- Founders & co-founders
- Top salespeople
- Financial controllers or CFOs
- Anyone whose loss would seriously impact the business
Why It Matters
This kind of insurance builds trust with lenders, investors, and employees, and ensures your company won’t face financial chaos during a difficult time.
