Every business has certain people whose skills, relationships, or knowledge are crucial to its success. If one of these key people were to pass away or become disabled, the financial and operational impact could be devastating. Key person insurance is designed to help the business recover from such a loss and maintain stability.

This type of life insurance is owned by the business and covers a key employee, owner, or partner. If the insured person passes away, the policy’s death benefit is paid to the company. Those funds can be used to cover lost revenue, hire and train a replacement, reassure lenders, and maintain customer confidence during a difficult transition.

Business owners choose key person insurance because it acts as a safety net, giving them time and resources to adapt without putting the entire company at risk.

When a small tech company lost its lead developer unexpectedly, their key person policy paid $500,000 to the business. This allowed them to hire a qualified replacement quickly and keep important projects on schedule, preventing the loss of their biggest client.

Key person insurance helps safeguard the future of your business by protecting against the loss of people you can’t afford to lose.