Key Person Insurance

Protection & peace of mind for your business

Losing a key person can be disruptive to the business from an emotional, operational and financial perspective. The death of a key person in the business can often be the death of the company, however, a key person policy provides customers, creditors and stakeholders alike with peace of mind while the business moves forward.

Connect with an advisor →

Why Key Person Insurance?

Insuring the irreplaceable

Key person policies are taken out on those who are integral to the day-to-day functioning and financial viability of your business.

Securing financial solvency

Whether the funds are used to pay off debts, pay employees or tide the business over until a replacement is found, key person insurance provides security to the team.

Tax-free cash flow

Like all life insurance policies, funds received from a key person’s policy are tax-free to the organization.

Any questions?

  • Who is key person insurance purchased for?

    Key person insurance is traditionally taken out on those who are an integral piece of the operations of the business. Most commonly, business partners will take our policies on each other, however, this coverage can extend to your leadership team and employees who are essential to the business’ success.

  • Does a key person policy benefit go to the family or the company?

    Not to be confused with a personal policy, the tax-free death benefit from a key person policy will go to the business and not the individual’s family. 

  • Why should you invest in key person insurance?

    In many instances, the loss of a key person will have detrimental impacts on the business which can extend beyond financial compensation. The funds from a key person policy will serve to see your business through this tough chapter and ensure solvency while a replacement is being investigated.

  • How much insurance should business partners take out on each other?

    There is no magic number. The amount of the insurance policy will highly depend on the needs of your business. Using a multiple of the individuals’ salary, taking into account debt obligations and cash flow requirements are all important pieces to take into consideration when determining the amount of the key person policy.

Let's start the conversation

Connect with an advisor