Your Business Is Insured. Is the Person Running It?
Most businesses carry property, liability, and vehicle insurance. Far fewer carry coverage on the one asset that drives nearly all of their revenue: the key person. See your estimated coverage gap in under two minutes.
Calculate My GapWhen a key person is lost unexpectedly, revenue drops immediately. Loan payments, leases, payroll, and client commitments do not. Key person coverage provides liquidity at the exact moment the business needs it most.
The right coverage amount accounts for three things: the revenue the key person generates during the replacement window, the cost to find and ramp a replacement, and any business debt that could be called upon their loss.
Key person policies are owned by the business, with the business as beneficiary. The payout is generally received income-tax-free and can be used to stabilize operations, repay debt, or fund a buy-sell obligation.
Key Person Profile
Enter figures for the individual whose loss would most impact the business.
Business Exposure
These figures combine with the revenue at risk to calculate total coverage need.
Your Estimated Key Person Coverage Need
Common Questions
What is key person insurance?
Key person insurance is a life and/or disability policy owned by the business, not the individual. The business pays the premiums and receives the death or disability benefit. The payout gives the business liquidity to replace the key person, service debt, reassure clients and investors, and stabilize revenue during the transition.
Who qualifies as a key person?
Any individual whose loss would significantly impact business revenue, operations, or creditworthiness. This includes owner-operators, top salespeople, technical specialists the business cannot quickly replace, and executives whose relationships drive client retention.
How is the coverage amount determined?
Coverage is typically built from three components: the revenue the key person directly generates or manages (multiplied by the years needed to replace them), the cost to recruit and train a replacement, and any business debt that creditors might accelerate upon the key person's loss. This calculator estimates all three and totals them.
Is key person insurance tax deductible?
Generally no. When the business is the beneficiary of a key person policy, premiums are not deductible. The death benefit is typically received income-tax-free by the business. Consult a tax advisor for your specific structure.
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Protect What Drives Your Business
Key person coverage is one piece of a complete business protection plan. A King Legacy Group strategy review covers your buy-sell funding, business debt exposure, succession gaps, and personal retirement readiness, all in one conversation. Schedule your complimentary review and see your LivingLEGACY™ Designed.
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Important. This calculator is for educational purposes only and does not constitute financial, legal, or insurance advice. Coverage need estimates are simplified and do not account for all factors affecting insurability, actual premium costs, policy terms, or tax treatment. Actual key person coverage amounts and premiums depend on underwriting, health history, business financials, and policy structure. Consult a qualified insurance and financial professional for your situation.