Key Person
With Key Person Insurance, Your Business is Covered—No Matter What
Are you a business owner, executive, or another critical player? How many people rely on you? Customers, employees, colleagues? And what would happen to the business (and those people) if you or another key employee were to unexpectedly pass away tomorrow?
The things you do every day to take care of your business make a massive difference in the lives of others. And you can insure that legacy continues with key person insurance.

What is Key Person Insurance?
If you’ve never heard of key person insurance, you’re not alone. It’s one of the lesser-known types of insurance, but it fills a need with a new way of thinking about catastrophic events, as they relate to business.
It’s a life insurance policy purchased by an organization to cover a key individual (employee). The company pays the premiums and should that person die; the company receives the payout.
What does key person insurance protect against? In short, financial loss. If a business owner or executive passes away, the business will need to the cover the cost of…
- Lost Profits
- Recruitment
- Training
- Exit Strategy
- Sale
- Debt Satisfaction
- Funds Distribution
- Severances
In fact, a keyperson insurance policy can save a business from bankruptcy. But it can also be designed to be a surprisingly positive employee retention benefit.
Choosing the Right Key Person Insurance Policy
There are two major types of key person insurance policies. There’s a term key person policy, which is generally lower in cost but only covers the individual for a set period of time. And there’s a whole or universal key person policy, which requires a more significant investment but does not expire before the individual retires.
The cost of key person insurance will vary, depending on the age and health of the individual being covered, as well as the amount of coverage needed to settle business in the event of their death.
What’s the right key person insurance policy for your business? It’s the one that helps you sleep at night, knowing that all possible circumstances are accounted for. Let’s discuss all the ways ARC Wealth Strategies can insure the future of your business today.