Key person insurance is a life insurance policy taken out by a business on the life of an essential employee, such as a founder, executive, or any individual critical to the company's success.
Financial Protection
Provides financial support to the business in the event of the key person's death, covering potential losses incurred from their absence.
Business Continuity
Helps ensure that the company can continue operations while finding and training a replacement.
Investor Confidence
Having key person insurance can enhance investor confidence by showing that the business has a plan for handling critical personnel losses.
