Business Resilience · Authority Guide
Key-Person Insurance for Resilient Businesses
Key-person life and disability insurance funds business continuity when a critical individual is lost. The business owns the policy.
Executive summary
Key-person life and disability insurance funds business continuity when a critical individual is lost. The business owns the policy.
- Life: covers death of key individual
- Disability: covers extended absence
- Sized to cover replacement + revenue gap
Key takeaways
- Life: covers death of key individual
- Disability: covers extended absence
- Sized to cover replacement + revenue gap
- Premiums not tax-deductible; benefits tax-free
Key strategies
Strategy 1
Life: covers death of key individual
Strategy 2
Disability: covers extended absence
Strategy 3
Sized to cover replacement + revenue gap
Strategy 4
Premiums not tax-deductible; benefits tax-free
Pro-tips checklist
- Review when key roles change
- Coordinate with buy-sell agreement
FAQ
When is key-person insurance worth it?
When the business depends materially on a specific individual's skills or relationships.