Business-owned life insurance
Key person insurance pays the business if a founder, owner, or critical employee dies. It is how investors, boards, and buy-sell agreements protect a company from losing the person holding it together. A licensed agent structures it with you through our multi-carrier brokerage.
Business-owned coverage is arranged through a licensed agent and issued by the carrier after underwriting and the required consent paperwork. Nothing on this page is tax advice.
Start with the need
Lender requiring life insurance for an SBA or bank loan? That is usually a personal policy with a collateral assignment, and you can quote it online right now.
SBA loan life insuranceHow it works
Who the key people are, what the business would lose, and what the agreement or investor actually requires. Coverage amounts are typically discussed as a multiple of the person's economic value to the business.
Employer-owned coverage requires the insured employee's written consent before the policy is issued, under federal tax rules for employer-owned life insurance. We walk both sides through the paperwork; your tax adviser confirms the treatment.
The application runs through our multi-carrier brokerage with the business as owner and beneficiary. Underwriting covers the key person's health and the financial case for the amount.
Common questions
A life insurance policy a business buys on an owner, founder, or employee whose loss would seriously damage the company. The business pays the premium, owns the policy, and receives the benefit, which it can use to steady operations, replace revenue, recruit a successor, or fund a buy-sell agreement.
You can start the application online with your business named as the policy owner, and the carrier's application collects the required consent paperwork and underwriting information. A licensed agent stays available throughout, and some cases still finish with one, depending on the carrier and the amount.
Federal rules for employer-owned life insurance (IRC section 101(j)) make the death benefit taxable to the employer unless notice-and-consent requirements are met before the policy is issued, with exceptions that depend on who the insured is. We handle the consent paperwork as part of the process, and your tax adviser should confirm how the rules apply to your business.
Usually not. SBA and bank lenders typically require a personal policy on the owner with a collateral assignment to the lender, which is a different structure you can quote online. If the requirement came from a lender, start on our SBA loan life insurance page.
It depends on what the person contributes and what the agreement requires. Carriers commonly evaluate requests against the key person's compensation and role. The right number comes out of the conversation, and the carrier decides what it will issue.
Talk it through
Tell us who needs covering and what prompted it. A licensed agent calls you back, walks through the structure, and shops the carriers.
Start online
This opens a carrier application with your business named as the policy owner and the key person as the insured. Underwriting, required consent forms, and approval are handled by the carrier during the application. A quote is not an offer of coverage.
Prefer a person to set it up? Request a call instead.
MedaSynq Insurance Services · Licensed insurance agency · NPN 22206860
MedaSynq Insurance Services (DBA of MedaSynq Technologies Inc) is a licensed insurance agency, not an insurance company. NPN #22206860. Insurance products are underwritten and issued by their respective carriers. Availability, policy forms, rates, and underwriting vary by state and carrier. Nothing on this page is legal or tax advice; consult your own advisers about employer-owned life insurance rules.