Sales concepts

Protect the business with Key Person life insurance

A key person life insurance policy helps protect the business by having a cash reserve set aside in the event of a company’s top talent passes away.

A business’s success is often built on the experience, knowledge, skills, and special abilities of its top people. But what happens if one of those key employees passes away? Your clients can protect their business with Key Person life insurance.

How does this strategy work?

If your clients depend on one or more key people, it may be necessary for them to have a cash reserve set aside to protect against the loss of their company’s top talent. That’s cash that could be needed to recruit and train a new hire, or to make up for missed opportunities and lost profits. Instead of pulling cash out of the business at a critical time or straining its credit, your clients can set up a contingency by purchasing a life insurance policy on the lives of their key people. That way, if any of their key people pass away, the life insurance proceeds will be readily available.

Key person protection chart.

Prospective client

A business with:

  • Strong entrepreneurial owners
  • Key sales personnel or managers
  • Professionals with special skills
  • Specialty products or services

Highlighted product(s) with this concept

BrightLife® Grow 
VUL Optimizersm

See all accumulation products

Client materials

Financial Professional materials

¹  Loans and withdrawals reduce the policy’s cash surrender value and death benefit, and increase the chance a policy may lapse. The client may need to increase premiums in later years to keep the policy from lapsing.

Life insurance products are issued by Equitable Financial Life Insurance Company (New York, NY) or Equitable Financial Life Insurance Company of America, an Arizona stock company with an administrative office located in Charlotte, NC and are co-distributed by Equitable Network, LLC (Equitable Network Insurance Agency of California in CA; Equitable Network Insurance Agency of Utah in UT; Equitable Network of Puerto Rico, Inc. in PR), and Equitable Distributors, LLC. Variable products are co-distributed by Equitable Advisors, LLC (Member FINRA, SIPC) (Equitable Financial Advisors in MI and TN) and Equitable Distributors, LLC. When sold by New York based (i.e. domiciled) Equitable Advisors financial professionals life insurance products are issued by Equitable Financial Life Insurance Company, (NY, NY).

IU-6694305.1 (06/2024) (Exp. 06/2028)