Key Person Insurance
If your top executive, founder, or rainmaker were gone tomorrow, could your business survive?
Key Person Insurance ensures continuity, cash flow, and confidence when it matters most.
A key employee’s knowledge, leadership, or client relationships can be the driving force behind a company’s success yet their value is often underestimated.
The sudden loss of that individual can cause serious financial disruption, reputational damage, and even business failure.
IULPolicy.com offers strategic Key Person Insurance solutions using Indexed Universal Life (IUL) to help protect your business from the unexpected. Coverage is designed to go beyond basic life insurance delivering liquidity, flexibility, and long-term value.
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Frequently asked questions
What is key person insurance?
Key person insurance is a life insurance policy a business takes out on an essential employee or owner. The company receives the death benefit.
Who qualifies as a key person?
Founders, executives, top salespeople, inventors, or anyone critical to the business’s success and continuity.
Is key person insurance tax-deductible?
Generally, premiums are not tax-deductible if the business is the beneficiary.
How much coverage should I get for a key person?
This depends on their contribution to revenue, profit, or intellectual property. Many companies insure 1–3x their annual contribution.
Can I use an IUL policy for key person coverage?
Yes — Indexed Universal Life is often used because of its flexibility, permanent coverage, and cash value accumulation.
What happens if the insured key person leaves the company?
The business can transfer ownership, use the cash value, or repurpose the policy.
How quickly does a payout happen?
Once the claim is submitted and processed, payouts typically happen within a few weeks.
Is a medical exam required?
For large policies or certain ages, yes — but simplified issue policies may also be available.
Can I insure multiple key people?
Yes. Many businesses insure multiple team members under separate policies.
Is this just for big corporations?
Not at all. Small businesses, startups, and family-owned companies use key person insurance to protect continuity and peace of mind.
CASE STUDY
A luxury real estate brokerage relied on a top-producing agent who generated over $25 million in annual sales.
When the agent tragically passed away, the business faced significant financial disruption. Thanks to a $1 million Key Person IUL policy in place, the firm received a lump-sum benefit that covered operating expenses, stabilized client relationships, and funded the recruitment of a successor saving the business from collapse.
CASE STUDY
A luxury real estate brokerage relied on a top-producing agent who generated over $25 million in annual sales.
When the agent tragically passed away, the business faced significant financial disruption. Thanks to a $1 million Key Person IUL policy in place, the firm received a lump-sum benefit that covered operating expenses, stabilized client relationships, and funded the recruitment of a successor saving the business from collapse.