Business · Protect the company behind the family
Business Owner Insurance
Life, disability and critical illness coverage for business protection.
- Key-person protection
- Buy-sell funding
- Loan and succession planning
Where insurance fits in a business plan
A business can lose revenue, relationships, credit capacity and leadership when an owner or key employee dies or becomes seriously ill. Insurance can create liquidity exactly when the business needs it, subject to the contract.
Four common risks
The policy owner, insured person and beneficiary should match the documented objective.
- Key-person loss
- Funding a buy-sell agreement
- Repaying or securing business debt
- Covering tax or estate obligations
Key-person insurance
The business owns and pays for coverage on a key person and is usually the beneficiary. The amount may reflect replacement costs, lost profit, debt and time required to recover. Written consent and an insurable interest are required.
Buy-sell funding
Insurance can fund the purchase of a deceased or disabled owner's interest under a legal agreement. The agreement, valuation formula and ownership structure must be coordinated with lawyers and accountants before policies are issued.
Tax and ownership need expert advice
Corporate-owned life insurance can have tax consequences and may create a capital dividend account credit on death. Premium deductibility is limited. Ownership changes, shareholder benefits and beneficiary designations require qualified tax advice.
How to determine coverage
Use financial statements and a written scenario: lost profit, recruitment, debt covenants, share value, tax, working capital and transition time. Avoid a round-number policy with no documented business purpose.
Review as the company changes
Revisit ownership, valuation, debt and key roles annually and after financing or shareholder changes. A policy can remain technically active yet no longer match the legal agreement.
Personalized quote request
Tell us what the policy needs to do.
Business coverage should be tied to a documented owner, key-person, debt or succession risk.
- Product-specific questions
- Needs-led advisor review
- Your preferred follow-up time
Questions, answered
What people usually ask
Can a company own life insurance on an employee?
Yes, with consent and a legitimate insurable interest, subject to insurer and legal requirements.
Are premiums tax-deductible?
Usually not, with limited exceptions. Obtain tax advice for the specific arrangement.
How is key-person coverage calculated?
Methods can consider profit contribution, replacement cost, debt and recovery time. The rationale should be documented.
Does insurance replace a buy-sell agreement?
No. Insurance funds the obligation, the legal agreement defines the obligation and process.
A quote should start with your needs
See the coverage gap before comparing prices.
Our guided interview organizes the details an advisor needs and lets you choose the best time for a follow-up.
Start my guided quoteSources and verification
We use official regulator, government and insurer information. Product contracts and eligibility change, verify details for your application.