Protect the people the business can't easily replace.
If losing one person would seriously disrupt revenue, relationships, or operations, key person insurance gives the business the funds to steady itself and move forward.
What key person insurance is
Key person insurance is a life insurance policy the business owns on an essential individual, often a founder, a top producer, or someone whose knowledge and relationships are hard to replace. If that person passes, the business receives funds to help it stabilize.
What it helps the business do
- Bridge lost revenue while the business adjusts.
- Fund the search, hiring, and training of a replacement.
- Reassure lenders, partners, and clients during the transition.
- Buy time to make sound decisions rather than forced ones.
How it's structured
The business is typically the owner, payer, and beneficiary of the policy on the key individual (with their consent). The right coverage amount depends on that person's economic impact, something we help you estimate, and confirm with your CPA where appropriate.
Who it may fit
Key person coverage tends to fit any business where a small number of people drive most of its success. It matters less where responsibilities are spread out and no single loss would knock things off balance.
Coordinated with your professionals
Tax treatment and structure should be confirmed with your CPA and attorney. We handle the insurance-based strategy and coordinate the details with them.
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Educational only. Tax treatment of business-owned life insurance varies and must be confirmed with a qualified tax professional. Guarantees are subject to the claims-paying ability of the issuing carrier. NOI does not provide tax, legal, or investment advice.