Business Planning
Business Life Insurance
Learn how life insurance may help businesses prepare for ownership changes, key-person loss, and employee benefit conversations.
Start With Purpose
Match Coverage to the Business Need
Business life insurance is often discussed in connection with continuity planning. The right questions begin with the business purpose, who would be affected, and how policy ownership and beneficiaries are structured.
Protect a key person
Fund a buy-sell agreement
Support succession planning
Review employee benefit options
Common Uses
Three Business Planning Topics
Key Person Coverage
A business may consider coverage on a person whose skills, relationships, or leadership are important to operations.
Buy-Sell Funding
Life insurance can be one possible funding method for an agreement that addresses an owner’s death.
Executive Benefits
Some businesses explore life insurance in benefit arrangements. Terms, eligibility, and tax treatment can vary.
Before You Decide
Questions Worth Asking
Business Life Insurance FAQs
General education to help you prepare for a more informed conversation.
What is key person life insurance?
It generally refers to coverage a business owns on an important employee or owner. The business may be the beneficiary, subject to policy terms and applicable rules.
What is a buy-sell agreement?
It is an agreement that can outline what happens to an owner’s interest after certain events. Life insurance may be one way to help fund a purchase after death.
Can a business own a life insurance policy?
A business can be a policy owner in some arrangements. Ownership, consent, beneficiary designations, and tax considerations should be reviewed carefully.
Are policy values guaranteed?
Some policy features may be guaranteed under the contract, while other values or assumptions may not be. Read the policy and illustration carefully.
How much coverage does a business need?
There is no one-size-fits-all amount. The purpose of coverage, financial impact, agreements, and policy terms all matter.
Is business life insurance tax-free?
Tax treatment depends on the arrangement and current law. This page provides general education, not tax advice.