The bottom line What happens to key person coverage after departure depends on the policy’s ownership and purpose. In the key-person structure described by the State of Idaho Business Portal, the business owns the policy, pays the premiums, and is the beneficiary, so the departing employee is not the policy owner. A departing employee does … Read more

The bottom line Key person coverage calculation methods compared: most businesses size key person coverage by estimating the financial loss a key person’s death or long-term disability would cause, then choosing a method that fits their situation. The business owns the policy, pays the premiums, and is the beneficiary. Banks or government loan programs may … Read more

The bottom line How often should key person coverage be reviewed? Most businesses should review key person coverage at least once a year, and again after any major change such as a new owner, a large loan, or a key employee leaving. A yearly check keeps the death benefit aligned with the real financial loss … Read more

The bottom line How to calculate key person life insurance is to estimate the business loss tied to one person’s death or long-term disability, then compare that loss with any continuity or lender requirement. In the Idaho Business Portal’s described structure, the business owns the policy, pays the premiums, and is the beneficiary. A useful … Read more

The bottom line To get a key person life insurance quote for my business, start with the person, the business risk, and the purpose of the coverage. Write down the financial exposure you want the policy to address, then ask a licensed life insurance agent what information is needed for an estimate. In the structure … Read more

The bottom line Key person vs buy sell life insurance comes down to who the policy protects. Key person coverage protects the business against financial loss when a key employee dies or becomes disabled. Buy-sell coverage funds an ownership transition when an owner dies. Many businesses use both. When you compare key person vs buy … Read more

The bottom line Key person coverage based on salary or company revenue is not a fixed formula. The business, not the individual, owns the policy, pays the premiums, and is the beneficiary, so the amount should reflect the financial loss the company would suffer, not the employee’s paycheck alone. Key facts The business owns the … Read more

The bottom line How much key person life insurance a small business needs depends on the financial loss the business would face if that person died or became disabled. There is no universal amount. A practical starting point is to total replacement, lost-profit, debt, and transition costs, then review the estimate. The coverage question should … Read more

The bottom line What happens to key person coverage after sale depends on who owns the policy. The business that owns the policy, pays the premiums, and is the beneficiary controls what happens to it after a sale. A buyer can keep, transfer, or end the coverage, and the proceeds can fund a buy-sell agreement. … Read more

The bottom line How much key person coverage does a business need? Set a working target by estimating the financial loss a key person’s death or long-term disability could create, then matching the policy to that exposure and any lender requirement. There is no single amount for every business, so review the worksheet as the … Read more