Some businesses depend heavily on an owner or employee whose death could disrupt revenue or operations.

That’s where key person insurance comes in.

What Is It?

Key person life insurance is generally owned by a business on an important owner or employee, with the business as beneficiary. A covered death benefit may help meet expenses while the business responds to the loss. Underwriting, insurable-interest rules and required notice and consent apply.

Why It Matters

If that person is lost:

• Revenue may drop
• Operations may suffer
• Investors may lose confidence

What Proceeds May Help Support

• Business continuity
• Cash flow stability
• Long-term value

Final Thought

If your business depends heavily on one person, assess the potential financial impact and whether insurance fits your continuity plan. Review policy terms and employer-owned life insurance tax requirements with qualified professionals.

Explore your options

Continue with key person insurance guidance, insurance-funded buy-sell agreements. For insurance questions, contact Anil Khanchandani, CLTC®. Consult qualified legal, tax or investment professionals for advice in those areas.