Key Person Life Insurance Provided by Our Agency

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Protect Your Business Against the Unexpected

Key Person Life Insurance helps safeguard your business when a crucial team member passes away. It provides financial stability and a plan for continuity during uncertain times.

Key Person Life Insurance, also known as Key Man Insurance, is a life insurance policy owned by a business. It covers a key employee, partner, or owner. If that person unexpectedly dies, the business receives the death benefit.

This coverage is especially important for small and mid-sized businesses that depend on one or two individuals for their success. It ensures that you have the financial resources to manage disruptions, cover expenses, or even restructure operations if necessary.

A key person is someone whose knowledge, skill, leadership, or financial contribution is vital to your company’s success. This could include:

  • Founders or co-founders
  • Top executives and decision-makers
  • Lead engineers or product designers
  • Sales leaders with strong client relationships
  • Investors or financial backers involved in operations

If losing that person would significantly impact your company’s ability to function, they likely qualify as a key person.

Here’s how the coverage functions:

  • The business takes out the policy on the key person and pays the premiums.
  • The business is the policy’s beneficiary and receives the death benefit if the key person dies.

These funds can be used to:

  • Cover the cost of recruiting and training a replacement
  • Manage temporary business losses
  • Pay off debts or reassure investors and creditors
  • Wind down operations if necessary

It acts as a financial cushion to help your company navigate the transition.

Having Key Person Life Insurance can:

  • Protect your company’s income and continuity
  • Maintain business value for shareholders or family members
  • Build confidence among investors and clients
  • Help with business loan approvals, as many lenders require it
  • Provide peace of mind to leadership and employees

The right amount of coverage depends on your business size, the role of the key person, and how much their absence would cost your operations. Some factors to consider include:

  • Revenue generated by the individual
  • Cost of replacement and onboarding
  • Time needed to regain operational stability
  • Debts or financial obligations connected to the individual

Our local team can help you assess your needs and recommend the right policy amount for your situation.

In most cases:

  • The business owns the policy
  • The business pays the premium
  • The business is the beneficiary

This setup ensures that your company can access the funds directly if the key person passes away.

At Sargent Insurance Agency, we understand how much your business relies on its people, especially those who drive your vision forward. We’re here to help you prepare for the unexpected with thoughtful, locally driven advice and the right coverage.

Our team will guide you through:

  • Choosing the right key person
  • Estimating coverage amounts
  • Selecting policy terms
  • Understanding tax implications

We’re family-led, just like many of our business clients, and we know the importance of preparing for the future together.

Let’s Get Started Together

Protecting your home starts with a conversation. Whether you're building, buying, or just reviewing your current plan, we're happy to help. No pressure. No hassle. Just honest, neighborly advice.

Call us today or request a callback. We’re always just down the road and ready to help you protect what matters most.

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