Life insurance
Life insurance for business owners: key person and buy-sell coverage
Business owners usually think about life insurance in two ways: coverage on a key person to protect the company if they die, and coverage that funds a buy-sell agreement so the surviving owners can buy a late partner's share.
Key person coverage
The company buys a policy on someone whose loss would hurt the business, such as a founder or top salesperson. If that person dies, the payout can help the business cover lost revenue, replace the person and keep operating.
Buy-sell funding
Partners agree in writing that, if one dies, the others will buy the share from the family. Life insurance can provide the money. Without it, the survivors may have to find the cash or take on the family as a partner.
Have this ready when you call
- Business structure and owners
- Your buy-sell agreement, if one exists
- A rough value of the business
- Names and ages of key people
Common questions
Who pays the premiums?
It depends on how the policy and agreement are set up. A tax professional and attorney should review the structure.
Do I need an attorney?
For a buy-sell agreement, yes. We can help with the insurance side.
Related answers
Rather talk it through?
Call 855-367-1095 and a licensed agent will go through your situation with you. There is no charge to ask, and no obligation to enroll.
- Licensed insurance help
- No guaranteed eligibility, pricing, or availability
- Educational starting point
Information on this site is educational and does not guarantee eligibility, enrollment, pricing, or availability. It is not a recommendation to buy any specific plan or policy.