Business Life Insurance
Business Life Insurance
Protect your business and your partners.
Your business is one of your most valuable assets. Business life insurance protects it from the financial impact of losing a key person, funds partnership transitions, and rewards your top talent.
Understanding Business Life Insurance
Business life insurance encompasses several strategies that use life insurance to protect a business and its stakeholders. Key person insurance protects the business from the financial loss of a critical employee or owner. Buy-sell agreements funded by life insurance ensure a smooth ownership transition if a partner dies. Executive benefit plans use life insurance to attract and retain top talent. Each strategy serves a distinct purpose in protecting and growing your business.
Is This Right for You?
- Business owners who want to protect the company from the loss of a key person
- Partners in a business who need a funded buy-sell agreement
- Companies that want to offer executive benefits to attract top talent
- Business owners with SBA loans that require life insurance as collateral
- Entrepreneurs who want to ensure business continuity for their family
- Any business where one or two people are critical to revenue and operations
Why Choose Business Life Insurance
Key Person Protection
Protect your business from the financial impact of losing an owner, partner, or critical employee.
Funded Buy-Sell Agreements
Ensure surviving partners can buy out a deceased partner's share without financial strain or outside investors.
Executive Benefit Plans
Use life insurance to create tax-advantaged compensation packages that attract and retain key executives.
SBA Loan Collateral
Many SBA loans require life insurance on the business owner. We structure the right policy to satisfy lender requirements.
Business Continuity
Ensure your business can survive and continue operating through the loss of any critical individual.
Tax Advantages
Certain business life insurance strategies offer significant tax benefits for both the business and the insured.
How It Works
Identify the Need
We assess your business structure, key people, and specific risks to identify the right strategy.
Design the Solution
We structure the policy ownership, beneficiary, and funding to achieve your specific business goals.
Apply & Underwrite
The key person or insured completes the application. The business or trust is typically the owner and beneficiary.
Business Is Protected
Coverage is in force. If the insured passes away, the benefit flows to the business as designed.
Frequently Asked Questions
Key person insurance is a life insurance policy owned by the business on a critical employee or owner. If that person dies, the business receives the death benefit — providing capital to recruit a replacement, cover lost revenue, or pay off business debts.
Each partner takes out a life insurance policy on the other(s). If one partner dies, the surviving partner(s) use the death benefit to buy the deceased's share from their estate — at a pre-agreed price. This prevents the family from becoming unwanted business partners.
A common approach is to calculate the key person's contribution to revenue, the cost to recruit and train a replacement, and any outstanding business debts they're personally guaranteeing. We'll help you arrive at the right number.
Generally, premiums for key person insurance are not tax-deductible. However, the death benefit is typically received income-tax-free. Executive benefit plans have different tax treatment. We'll work with your CPA to optimize the tax structure.
The business owns the policy, so it can surrender it for cash value, transfer it to the departing employee as a benefit, or use it for another key person. We'll help you plan for this contingency.
Ready to Get Covered?
Get a free, no-obligation quote in minutes. A licensed advisor will walk you through your options and help you find the right fit.