Protect Your Business with Key Person Insurance

Key person insurance is a life insurance policy that a business purchases on a critical employee or owner. If that person passes away or becomes disabled, the policy pays a death benefit directly to the business — providing financial stability during a crisis.

What Happens Without Key Person Insurance?

• Loss of revenue from disrupted operations
• Cost of recruiting, hiring, and training a replacement
• Loan calls from lenders who may require key person coverage
• Potential business failure if the key person is the primary revenue generator

Who Qualifies as a "Key Person"?

• Founders and owners
• Top sales producers
• Technical experts whose knowledge is irreplaceable
• Executives and managers critical to operations

How Much Coverage?

Common approaches: 5–10x the key person's compensation, or an amount equal to the business's annual revenue contribution from that person. Peter can help you determine the right coverage amount for your situation.

Tax Treatment

Premiums are generally not tax-deductible when the business is the beneficiary. However, death benefits received by the business are usually tax-free. Consult a tax advisor for your specific situation.