Business Life Insurance
What is key man life insurance?
Key man life insurance (also called key person insurance) is a life insurance policy owned by a business on the life of a key employee or owner. The business pays the premiums and is the beneficiary. If the key person dies, the business receives the death benefit to cover the financial impact of losing that person.
Key Points
- Key man insurance: business owns policy on life of key employee or owner
- Business pays premiums and is the beneficiary
- Death benefit covers financial impact of losing the key person
- Helps business survive the loss of a critical person
- An independent agent can help you determine the right coverage amount