Business Insurance
Protect your business from the loss of the people who drive it.
Key person insurance covers the financial impact of losing a critical employee, partner, or founder. If your business would suffer without a specific person, you need this coverage.
✓ Independent & fiduciary ✓ 40+ A-rated carriers ✓ No sales pressure ✓ CFA charterholder
At a Glance
Key Person Insurance — the essentials.
Policy Owner
The business — not the individual
Beneficiary
The business receives the payout
Tax Treatment
Premiums not deductible; payout is tax-free
Best For
Founders, partners, revenue-critical employees
Who Is This For
Is key person insurance right for you?
- Any business that depends on one or more key individuals for revenue
- Companies with a founder or CEO whose death would threaten the business
- Businesses with key salespeople, engineers, or technical leads
- Companies seeking bank loans — lenders often require key person coverage
For Texas Business Owners
If you died tomorrow, could your business survive? Could it survive without your top salesperson, your lead engineer, or your operations manager? Key person insurance gives your business the cash it needs to recruit, retrain, and recover.
Honest Assessment
When it works — and when it doesn't.
We're a fiduciary. That means we tell you when a product isn't right for you.
● When it makes sense
- Your business has identifiable people whose loss would cause significant financial harm
- You're applying for a business loan and the lender requires it
- You have partners and need coverage separate from your buy-sell agreement
- You want to cover the cost of recruiting and training a replacement
● When it doesn't
- No single person significantly impacts your revenue — your risk is diversified
- You already have adequate coverage through your buy-sell agreement
- Your business is primarily asset-based rather than people-based
Common Questions
What you're probably wondering.
How much key person coverage do I need? +
A common formula is 5–10x the key person's annual compensation, plus estimated recruiting and training costs. For founders, consider the revenue impact over 1–2 years. We'll help you calculate the right amount.
Can I use term life for key person insurance? +
Yes — term life is the most cost-effective option for key person coverage. If the key person is expected to be critical for 10–20 years, a matching term policy makes sense. For permanent needs, whole life or UL is better.
Who owns the policy? +
The business owns the policy, pays the premiums, and is the beneficiary. The insured person (the key employee) must consent to the coverage. Premiums are not tax-deductible, but the death benefit is received tax-free.
What if the key person leaves the company? +
You can cancel the policy, transfer ownership to the departing employee, or keep it in force if they might return. We'll help you decide based on your specific situation.
Industry Insights
See how this applies to your industry.
Ready to find the right key person insurance?
30-minute conversation. No pressure. We'll look at your specific situation and find the best option across 40+ carriers.