Key Person Life Insurance for Executives

At Diversified Insurance Brokers, we specialize in helping companies safeguard their most valuable leaders. Key person life insurance ensures your business has financial protection if a top executive, founder, or rainmaker unexpectedly passes away. With access to 100+ carriers, we provide tailored solutions to protect your business continuity and stability.

What Is Key Person Life Insurance?

Key person life insurance is a policy owned by a business that insures the life of an essential executive. If that person dies, the business receives the death benefit to cover lost revenue, recruit and train a replacement, or maintain investor and lender confidence.

Why Executives Need Key Person Coverage

Executives often drive strategy, growth, and financial relationships. Losing them can cause disruption that threatens operations and revenue. Key person insurance provides a safety net, giving businesses time and resources to adapt.

Life Insurance Quoter

Case Example: Protecting a CFO

A consulting firm depended on its CFO to manage finances and lender relationships. They purchased a $2 million key person policy to prepare for unexpected loss. When the CFO suddenly passed away, the insurance payout funded an interim hire, preserved credit lines, and stabilized client confidence—preventing a major financial setback.

Who Is a Good Fit for Key Person Life Insurance?

• Small and mid-sized businesses that depend on one or two executives for revenue and relationships.
• Startups where founders’ expertise or contacts drive growth and funding.
• Established firms where executives maintain investor, lender, or client trust.

Policy Structures

Most companies select term coverage for affordability, while permanent coverage may be considered if the executive’s role is long-term or tied to financing agreements. Coverage amounts generally align with expected revenue impact, replacement costs, or outstanding loans.

Case Example: Startup Founder

A tech startup raised millions in funding due to its visionary founder. To reassure investors, the board required a $5 million key person policy. When the founder had a sudden health crisis, the insurance coverage protected the company’s valuation and allowed for the recruitment of an experienced CEO—keeping the business on track.