Business owners and key person coverage
Three protection conversations every owner can start.
Key person life insurance can help a business prepare for the financial impact of losing an essential owner or employee. The policy owner, insured, and beneficiary arrangements matter and should be reviewed with qualified advisers.
A buy-sell agreement sets out how ownership may transfer after certain events. Life insurance may be one way to fund a buyout after a death, but the legal agreement and the insurance policy must work together. An attorney should prepare or review the agreement.
Succession planning also involves people, operations, and financial commitments. Start by identifying who would make decisions, what obligations would continue, and who depends on the business. Coordinate insurance discussions with your legal and tax professionals.
Learn more from NAIC: Life insurance basics.