Key Person Life Insurance
Key Person Life Insurance
Plan ahead with confidence—protect what matters most with the right coverage.
Key Person Life Insurance from Income Resource Group
Every growing business relies on a few key individuals who play a vital role in driving success—whether it’s a founder, top executive, or someone with unique skills or client relationships. But what happens if one of those people is suddenly no longer there due to an untimely death or disability?
Key Person Life Insurance is designed to help your business weather that kind of loss. It provides critical financial support to help you regroup, manage disruptions, and maintain operations during a difficult transition. From covering lost revenue to funding recruitment or restructuring, this policy ensures your business stays steady—no matter what comes your way.
At Income Resource Group, we’ll help you identify who’s essential to your success and build a plan that protects the business you've worked hard to grow.
Key Person Life Insurance is a specialized life insurance policy that helps protect your business from the financial impact of losing a critical team member—such as an owner, founder, or someone whose expertise, relationships, or leadership is essential to the company’s success.
In the event that this key individual passes away, the policy provides a tax-free death benefit directly to the business. This financial support can be used in a number of ways, including covering lost revenue, helping with recruitment and training of a replacement, managing debt obligations, or simply keeping the business running smoothly during a challenging transition.
It’s not just about planning for the worst—it’s about ensuring business continuity and stability in the face of uncertainty. At Income Resource Group, we help you identify who
Key Person Life Insurance can be a smart, strategic move in a variety of business scenarios—especially when the success of your company depends on a few essential people. Here are a few common situations where having this type of protection is not only beneficial, but often critical:
When the business relies heavily on a single person’s name, reputation, or unique expertise.
If losing that individual would seriously damage your brand or operations, key person coverage can help keep things afloat while you regroup.If the loss of a top performer—like a lead salesperson or operations head—would cause immediate financial strain.
This policy helps provide working capital to stabilize your business in the short term.When a lender or creditor requires collateral for a business loan.
Many financial institutions ask for a collateral assignment on a key person policy to help secure the loan and ensure business continuity.In partnerships, where each partner wants the ability to buy out the other’s shares if something unexpected happens.
A key person policy can provide the necessary funds to support a smooth transition without disrupting ownership or operations.
At Income Resource Group, we work with you to identify critical roles within your organization and structure a plan that keeps your business strong, no matter what the future holds.
There’s no one-size-fits-all formula when it comes to determining how much key person life insurance your business should carry. The right amount depends on the role that person plays and the financial impact their absence would have on your company.
For example, if you're a sole proprietor purchasing key person insurance on yourself, your goal might be to leave behind enough coverage to help your family settle the business’s affairs—pay off any outstanding debts, close operations smoothly, and avoid unnecessary financial strain.
On the other hand, if you run a larger business and are insuring a key employee—like a top salesperson, executive, or technical expert—you might want enough coverage to recover lost revenue, fund recruitment and training of a replacement, or simply give the business a financial cushion while adjusting to the transition.
At Income Resource Group, we’ll work closely with you to assess your company’s specific needs and help structure a key person policy that’s thoughtfully aligned with your business goals and long-term security.
The structure of a key person life insurance policy usually depends on your business’s legal setup. In most cases, the company is both the policy owner and the beneficiary, and it pays the premiums. The insured key employee must provide written consent, agreeing that the business holds ownership of the policy.
If your company relies on individuals whose knowledge, leadership, or relationships are critical to its success, their unexpected loss could create serious challenges. Key person insurance helps bridge that gap, giving your business the financial resources it may need to recover, replace, and move forward.
Whether it’s about protecting your revenue, covering debts, or ensuring business continuity, we’re here to help you structure a policy that supports your long-term stability.
Connect with Income Resource Group today—and let’s safeguard the people who help power your business.
If your current key person insurance policy isn’t giving you the value or support your business needs—whether it’s due to unexpected rate increases, limited flexibility, or poor claims service—it may be time to explore other options.
That said, switching policies requires care. Canceling an existing policy before a new one is in place can leave your business exposed to risk—something no growing company should face.
At Income Resource Group, we make the transition smooth and secure. We’ll help you evaluate your current coverage, compare alternatives, and ensure there’s no gap in protection.
Let’s find a solution that truly supports your business goals—reach out today to explore your options.
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