How Key Person Life Insurance Can Help Protect a Business

Some employees are so critical to a business that losing them could create serious financial strain. Key person life insurance helps protect businesses from the unexpected loss of essential leaders or contributors.

What Key Person Insurance Does

Key person insurance provides funds to help a business recover after losing a critical individual.

It can help cover:

• Lost revenue
• Recruitment and training costs
• Business disruption
• Temporary operational expenses

Who Is Considered a “Key Person”

A key person may be:

• A founder or owner
• A senior executive
• A top salesperson
• A highly specialized employee

The definition depends on the business model and revenue structure.

Supporting Business Continuity

Insurance proceeds can provide breathing room, allowing leadership to make thoughtful decisions instead of rushed ones.