Key person life insurance is a policy a business buys on an owner or essential employee. If that person dies, the business receives the death benefit to cover lost revenue, recruiting costs or debts. For many small businesses in South Florida, one person drives most of the sales, so this coverage can keep the company stable.
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Insurance Risk Advisors compares coverage from multiple A-rated carriers for Broward, Miami-Dade and Palm Beach County.
Who counts as a key person?
A key person is anyone whose loss would seriously hurt the business, such as a founder, top salesperson, lead technician or someone with special expertise.
If losing that person would affect revenue, loans or client relationships, key person coverage is worth a look.
How much coverage does a business need?
Common approaches look at the person’s contribution to profits, the cost to recruit and train a replacement, and any business loans they guarantee.
We help you choose an amount that makes sense for your business.
Want to compare your options?
We shop several carriers so you can see real prices side by side.
Term or permanent for key person coverage?
Term life is often used because it is affordable and matches a set period, such as a loan term.
Permanent policies can also build cash value the business may access later.
Frequently Asked Questions
Who owns a key person policy?
The business owns the policy, pays the premium and is the beneficiary.
Is key person life insurance tax deductible?
Premiums are generally not deductible. Talk with your tax advisor about your situation.
Can key person coverage fund a buy-sell agreement?
A separate policy is often used for buy-sell agreements, but your advisor can help structure both.
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Request a quote online or call our Sunrise office. Insurance Risk Advisors has served South Florida for more than 35 years.
