Business life insurance
Think about the areas of your business you want to protect—your buildings, your assets, your inventory, or your data. Often overlooked, however, are the people responsible for the success of the company, including yourself and your top management. Losing one of these people could have a large impact on the success of your company.
We can help protect your business’s future with business life insurance options like key employee protection and business debt and family income protection plans.
Types of business life insurance
Key person insurance
Key person insurance is a life insurance policy you take out on crucial employees—including yourself. It helps protect your company against the financial loss caused by losing you or one of your top employees. Your company pays the premiums and if the insured dies, the benefit is paid to the business. Learn more about key person insurance by clicking the link above.
Business debt protection insurance
When your company purchases a life insurance policy on you, your company is the owner and beneficiary, receiving the insurance proceeds following your death, which are generally tax-free. Your company can use the proceeds to pay mortgages and debts, as well as provide an income to your family. Discover how our debt and family income protection insurance can help you by clicking the link above.
Buy-sell agreements
A buy-sell plan is a legally binding agreement between company owners that outlines what will happen should one of the owners of your company die unexpectedly. It addresses items such as how the company should be valued and how surviving owners might buy out the interest of the company. Learn how a buy-sell agreement can help you and your company by clicking the link above.
Key reasons why businesses need life insurance
Having a business life insurance policy in place can help provide the financial support your company would need following the loss of you or another key employee. This would help fund:
Lost revenue and profits
Hiring a replacement
Mortgages and debt payments
Support for the family of the deceased
Significant figures
Business life insurance FAQs
Business life insurance is a policy your company can use to help protect its financial stability if you or a key employee dies. It can help support your company's transition, succession planning, debt repayment, or family income protection.
Business owners generally aren’t required to have life insurance. However, lenders, investors, or buy-sell agreements may require or recommend coverage in certain situations.
The right amount of coverage for your company depends on your debts, revenue, succession plan, and the financial impact of losing your key person. As the owner of your company, you should work with your financial, tax, and legal advisors to determine an appropriate coverage amount.
Term life insurance is designed to help with temporary needs, like covering a loan or buy-sell agreement. Whole life insurance can be considered for longer-term planning, but the right choice depends on the business’s goals, budget, and timeline.
Life insurance makes a difference
Business life insurance can help protect your legacy and everything you’ve worked so hard to build. Learn how Scott Rajski learned about the importance of life insurance.
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Life insurance options, 401(k) plans, and other retirement plans
Learn about the different 401(k) and life insurance plans we offer. Together, we’ll help find a plan that works best for you and your employees.
Life insurance and annuities are issued and administered by Sentry Life Insurance Company, Stevens Point, WI. In New York, life insurance and annuities are issued and administered by Sentry Life Insurance Company of New York, Syracuse, NY. Policies, coverages, and benefits are not available in all states. See contract for complete details.
