PERSONAL INSURANCE

Key Person Life Insurance

Some people are especially important to the way your business operates. Consider the financial effect their loss could have on the business.

START WITH WHAT MATTERS

Plan around a role your business relies on.

Key person life insurance can help a business plan for the death of an important person. The conversation starts with their responsibilities and the resources a transition might require.

As an independent agency, Spice can help you compare available options and understand the details before deciding.

A CLOSER LOOK

Know what you are comparing.

Business continuity

Consider the effect on operations, customer relationships, and the time needed to find and support a replacement. A benefit may help with transition costs or, if continuing is not practical, an orderly wind-down. Any terminal- or critical-illness benefit would need to be expressly included in the contract.

Coverage structure

Review who owns the policy, who is insured, who receives the benefit, and the application requirements. The insured person's role, age and health, the business, and the amount and type of coverage can affect the cost.

A wider business conversation

Consider the policy alongside other business arrangements. Involve your legal and tax advisers when reviewing ownership, agreements, and tax treatment.

Coverage, eligibility, costs, and benefits depend on the policy and carrier. Review the applicable terms and exclusions before choosing.

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HELPFUL ANSWERS

Questions worth asking.

Is key person insurance the same as an employee life benefit?

No. Key person coverage is intended to address the business impact of an important person's death. Employee life benefits serve a different purpose. Policy ownership and beneficiaries matter.

Who counts as a key person?

Think about anyone whose loss could create significant financial or operational difficulty for your business. The relevant role depends on how your business works.

How should we approach the coverage amount?

Start with the person's responsibilities, likely transition costs, and the effect on the business. Available coverage and eligibility depend on underwriting and policy terms.

LET US TALK

Make your next decision with a clearer picture.

Tell us what you would like to understand or review. We will help you consider a practical next step.