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Key Person Life Insurance

Protecting Dreams
Since 1978

Key Person Life Insurance is life insurance purchased by, and for the benefit of a business insuring the life or lives of personnel integral to the business operations. This type of policy provides an immediate source of income that can be used to keep the operation running or to help wind down operations entirely after the loss of an owner or key employee.


With Key Person Life Insurance, the business is typically the beneficiary (rather than an individual) and the business pays the premiums. Policy features like the death benefit; the premiums and treatment of any account values can be flexible based on the needs of your business. Key Person Insurance planning may include term life, permanent life or disability insurance coverage.

A business should consider Key Person protection if:
  • The owner's or employee's name, reputation and/or specific skills are directly linked to the business' success and ability to generate revenue.

  • If the company's viability could be negatively impacted by their death.

  • The business owner is a sole proprietor who wants to make sure that beneficiaries have the liquidity needed to close the business.

  • The company relies on the sales income of a top producing salesperson.

  • The company's day-to-day operations are management by a specific employee.

SAVE BIG!  Bundle key person coverage with other business insurance at discounted rates.

Managing risk with Key Person

You can think of a Key Person policy as part of your risk management solution. If the designated person dies or is disabled, the policy provides funds to recruit & hire a replacement, continue  operations, or clear financial obligations.

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Tedford’s Insurance Experts are Ready to Help
(800) 852-9062
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