Key Person

For sole proprietorships or corporations, Key Person insurance covers the owner or key executive to ensure business continuation in the event of that person’s death. By purchasing this type of life insurance, the business can plan to proceed by utilizing the death benefit proceeds to replace that key individual. In a nutshell, the company purchases a life insurance policy on the key person, pays the premiums and is the beneficiary of the policy. In the event of the key person’s death, the company receives the death benefit, giving the company options to proceed with the business.