Business Owners Have Different Needs

 Personal life insurance is one thing – it’s designed to take care of your family in the event of your death. I.E., pay off a house, replace income, send kids to school, maintain standard of living and more. However, business owners have different needs and different people who depend on them. I.E., partners, employees, investors etc. This means different life insurance needs. As I always say (as sad as this may be) “You never need insurance, until you do”

Key Person Life Insurance 

This is a type of life insurance policy where the business pays the premium and is the owner of the policy

For more information, Text benefits to 844.408.1437 OR

Top Three Reasons To Have Key Person Life Insurance

key person

Many times, especially in early-stage companies, one or a few key people are vital to the company’s success. If that key person dies the company would experience an abrupt disruption. Often bringing the company to a temporary halt. Money from a key person policy can be used to attract, train and retain a qualified replacement.

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For companies that have investors or employees with ownership. Key Man Policies can provide liquid cash to pay off investors or buy back ownership from employees.


In the event the company needs to be dissolved a Key Person Policy can be used to pay severance to employees or pay off debt.

david and steve
Steve Ankerstar CFP | Retired Air Force Fighter Pilot & Founder of Ankerstar Wealth. Key Man Policy Holder

Buy-Sell Agreements Funded with Key Person Life Insurance

Buy-sell agreements are critical if you share ownership and have partners. In short, a buy-sell agreement is a prenuptial agreement for business owners. It clearly identifies the terms and procedures around dealing with the deceased partners ownership. I.E., Does the company have to buy back his/her ownership, does the company have to buy out a family member etc.

How Does It All Work

There is no long and drawn out explanation.

  • Work with a trusted insurance professional to identify your needs and amount of insurance.
  •  Go through the underwriting process. This process varies depending on the amount of insurance and insurance company you go with.
  •  Put in an application. Wait. When it gets approved, file it away and go grow your business. Your business is protected.

These policies are affordable and provide a much-needed level of protection for business owners. 

And many more… As we always say at Fortis. Life insurance is not a once size fits all. Talk to an agent. We are independent and work on your behalf to find the right policy.

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