Keyman Insurance
What is Keyman Insurance?
Keyman insurance is the insurance policy taken out by a company on the life of an essential key person, executive, or founder. The business is the policy owner, pays the premiums. Keyman Insurance is a smart financial strategy that protects your business from unexpected losses while offering tax management benefits. Keyman Insurance premiums are tax-deductible, helping you optimize your company’s financial planning.
Why is Keyman Insurance Good for a Company?
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Financial Protection – If a key person is deceased or incapacitated, the payout helps cover lost revenue, recruitment costs, and operational disruptions.
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Business Continuity – It ensures the company can continue operations without immediate financial distress.
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Investor & Lender Confidence – Many investors or lenders require keyman insurance before funding a business to mitigate risks.
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Protects Against Sudden Losses – A key person’s death can impact client relationships, stock prices, and business strategy.
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Tax Benefits – Premiums are tax-deductible.
Which Companies Should Have Keyman Insurance?
Startups & SMEs
Founders, co-founders, or key executives are often irreplaceable in the short term.
Partnerships & Family Businesses
If one partner or family member is critical to business success, Keyman Insurance helps ensure continuity and financial security.
Businesses with One or Few Key Decision-Makers
Companies where a single leader, top salesperson, or specialist drives revenue.
Companies Seeking to Reduce Tax Liabilities
Companies can use Keyman Insurance as part of financial planning strategy to legally lower tax liabilities.