Individuals whose death or serious illness would significantly impact business revenue, operations, or viability. Typically revenue-generators, technical specialists, founders, or senior management whose loss would cost substantially more than insurance premiums to address.

No fixed number. Some businesses have one critical founder; others have multiple key individuals. Insure anyone whose loss would create financial impact exceeding insurance costs. Start with most critical, add others as budget allows.

Generally no. Key person insurance premiums are typically not tax-deductible business expenses. Limited exceptions exist for short-term policies protecting specific loans. Professional tax advice essential for your circumstances.

Payout goes to the business (policy owner) as tax-free capital receipt. Business uses funds for legitimate purposes: recruiting replacement, covering lost revenue, maintaining operations, repaying debts, funding restructuring.

Potentially yes. Shareholder protection funds share purchases; key person insurance compensates business for financial loss. Same individual often needs both, serving different purposes. We help you assess whether both are appropriate.

Policy can be cancelled, transferred to new key person, or potentially assigned to departing individual as personal policy (tax implications apply). Review coverage when key people change roles or leave.

Absolutely. Key person insurance applies to anyone critical to business success regardless of ownership or management position. Senior salespeople, technical specialists, or key account managers commonly insured despite not being directors.

Annually minimum, or whenever significant business changes occur: new key people, revenue growth, key person role changes, business structure changes, or approaching policy renewal. We provide regular review services.