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Frequently Asked Questions
Can the company be the beneficiary of a policy?
Yes. In many cases, a company can own and/or be the beneficiary of a policy on a key person, provided there is an insurable interest and consent, in accordance with applicable rules and the insurer's process.
Is this insurance deductible for tax purposes?
Tax treatment can vary depending on the plan's structure, jurisdiction, and purpose. We do not offer tax advice; it is recommended that you consult with your CPA or tax advisor before making any decisions.
Are you ready to future-proof your company against unexpected human impacts? Schedule your free consultation today and learn how to implement this key solution.
Protect the operational heart of your business
In many medical practices and businesses, a single person can sustain revenue, reputation, and clinical continuity. Key Person Insurance is a life insurance-based solution (and, if applicable, additional coverages as per the contract) designed to help your business manage the financial impact of losing a key individual. It can provide liquidity for transition, recruitment, and operational continuity, depending on the policy terms and conditions.
**Educational information. Products subject to eligibility, underwriting, and insurer approval. Guarantees (if applicable) depend on the issuing insurer.**
How does it work?
The company takes out a life insurance policy for a key person (e.g., medical director, founding partner, senior executive), with their consent. In the event of the insured person's death, the company receives a death benefit as stipulated in the contract, providing liquidity to sustain operations, cover transition costs, and implement a business continuity plan. Some strategies can be complemented with disability coverage, subject to availability and eligibility, as these are separate products.
Who is it for?
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Business owners with strategic partners or key executives.
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Medical clinics or private practices where a specialist handles a large portion of the revenue.
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Law firms, consultancies, or businesses with critical leadership.
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Family businesses that rely on one or two people for operations and revenue generation.
Key Person Insurance
Key Benefits (without promising "zero interruptions")
Liquidity to manage the financial impact of a transition.
Support for recruitment, training or replacement, according to the business strategy.
It strengthens operational continuity during critical periods.
It can help maintain the business's financial commitments (e.g., fixed expenses), according to internal planning.
Peace of mind for partners, team and clients by having a contingency plan.
Stages of the Process
Initial assessment: we identify the key figures and the level of operational/financial exposure.
Coverage design: We estimate a coverage range aligned with income, responsibilities, and transition costs.
Application and formalization: the application process is completed, subject to eligibility and approval by the insurer; the beneficiary/owner is defined according to the business structure.
Support: periodic reviews when roles, income, corporate structure or risks change.