In many small businesses, there are one or two people whose skills and experience are essential to its ongoing success. While no amount of money can compensate for their loss, key person life insurance^† can provide the company with enough working capital to keep operating while funding the recruitment and training of a replacement.

If the key person can't be replaced, the insurance can be used to compensate other business owners for lost income and buy time to make decisions about the company's future. These choices are particularly challenging for smaller companies operating as partnerships or sole proprietorships.

Explore your key options.

A business is eligible to buy the same types of life insurance an individual can buy. Term life is attractive because the key person's employment is expected to end by retirement. It's also less expensive. Key person disability insurance is also something to look at.

Whole life policies are worth considering because they can be liquidated in the event the key person leaves the company without dying. These policies also build equity as long as you pay into them and can be considered an asset.

Every company is unique and needs special consideration. Your business advisor can put you in touch with the insurance specialist who is part of your business advisory team.