Life Insurance for Business
What is key person life insurance?
Key person life insurance is life insurance purchased by a business on the life of a key employee. If the key employee dies, the business receives the death benefit to cover the financial loss. The business pays the premiums and is the beneficiary.
Key Points
- Key person insurance: business purchases life insurance on a key employee
- Business receives death benefit if key employee dies
- Covers: lost revenue, cost of finding and training a replacement
- Key employees: founders, top salespeople, technical experts
- An independent agent can help you evaluate key person life insurance