What is Key Person Life Insurance?

What is Keyperson Life Insurance?

DISCLAIMER: The purpose of this information is to provide general information which is subject to change and is specific to state law.  ReliaQuote is not providing legal advice. If you have a specific legal issue or accounting issue, you should consult with a lawyer who is licensed to practice law in your jurisdiction or a certified public accountant familiar with tax regulations in your jurisdiction.

Maybe your business is operated primarily by one person or maybe your company is run by a small team of executives whose expertise is the lifeline of your business. The premature death of a key person could signal the premature death of the business. With a Keyperson Life Insurance Policy, a business can increase the chances of survival if it were to lose a key member of the organization.
  • cover business debt
  • leave working capital for a surviving partner(s) to continue the business
  • identify and hire a replacement for the key person
  • provide cash for the business in case there is a major revenue shortfall because of the loss of the key person