Key Person Assurance
Key person insurance is simply life insurance on the key person in a business. In a small business, this is usually the owner, the founders or perhaps a key employee or two. These are the people who are crucial to a business–the ones whose absence would sink the company. You definitely need to consider key person insurance on those people.
Key person insurance is a simple, cost-effective solution that provides financial security and certainty for a business in the event of the death or disability of a key person. … The business has the option to insure itself against this risk in a tax-effective manner.