Key Person Life Insurance
At Diversified Insurance Brokers, we know that the loss of a key employee, founder, or executive can have a devastating impact on a business. Key Person Life Insurance is designed to protect your company’s financial stability in the event that an essential team member passes away unexpectedly. With coverage through Lloyd’s of London, you can help ensure your business has the funds it needs to navigate challenging transitions, maintain operations, and safeguard its long-term future.
Key Person Life – Lloyd’s of London
Financial protection for your business if a vital employee or owner passes away—helping you cover lost revenue and secure operations.
Why Businesses Need Key Person Life Insurance
Key employees often bring unique skills, relationships, and leadership that cannot be quickly replaced. If they pass away unexpectedly, your business could face:
- Loss of revenue from interrupted operations or missed opportunities
- Increased costs for recruiting, hiring, and training replacements
- Disruption in client relationships or investor confidence
- Challenges meeting financial obligations or sustaining growth
How This Policy Protects Your Company
- Immediate Financial Support: Provides a lump-sum benefit to offset revenue loss and cover transition costs.
- Business Continuity: Helps maintain daily operations during leadership changes.
- Customizable Coverage: Tailored benefits to match the value of your key team member.
- Worldwide Protection: Coverage applies regardless of where the insured is located at the time of passing.
Simple Application Process
Applying through Lloyd’s of London is straightforward. Click “Apply Now” to access the secure application portal, provide details about your business and the key individual to be insured, and receive guidance from our experienced advisors at Diversified Insurance Brokers. Our team will walk you through policy options, underwriting requirements, and coverage limits to ensure the best fit for your company.
Why Work With Diversified Insurance Brokers?
We partner with premier carriers like Lloyd’s of London to deliver high-quality, specialized insurance solutions. With decades of experience and access to over 100 carriers, we help businesses of all sizes protect their most valuable assets—the people who drive success.
FAQs: Key Person Life Insurance – Lloyd’s of London
What is Key Person Life Insurance?
Key Person Life Insurance is a business-owned life policy taken out on an essential team member—such as an executive, founder, or employee—whose death would cause financial harm to the company. The company owns the policy, pays the premiums, and receives the death benefit. Coverage via Lloyd’s of London adds strong financial backing and global underwriting expertise.
Why use Lloyd’s of London for Key Person insurance?
Lloyd’s of London is a global insurance marketplace comprised of syndicates that underwrite risk. It has a long-standing reputation for handling complex and large-amount policies. With Lloyd’s, you often get broader underwriting flexibility, strong financial stability, and access to specialist expertise.
What does the Lloyd’s Key Person policy protect against?
The policy provides a lump-sum death benefit that can cover lost revenue, costs of recruiting or training a replacement, interruption of operations, debt obligations, or investor confidence, helping the business survive transitions.
How much coverage should a business get?
The right amount depends on factors like the key person’s contribution to revenue or profit, cost to replace or train, debt obligations, and projected losses during disruption. Many businesses use multiples of salary or value of the person’s revenue stream.
Are premiums tax-deductible?
Typically, no. Premiums paid by the business for Key Person Life Insurance are not tax-deductible as a business expense under U.S. tax law. The death benefit may generally be received tax-free by the business, depending on how the policy is structured. Always consult a tax professional.
What underwriting requirements apply?
Underwriting typically involves health/lifestyle questions, possibly medical exams, age limits, and verification of the person’s role in the business. With Lloyd’s, there may be more customized underwriting depending on the risk. Costs and premium amounts will vary accordingly.
