Key employee life insurance

Why have key employee life insurance?

What is key employee life insurance? Let’s face it, your employees are your most important asset to your business. Your top salesman could be vital for bringing in new business.

Or perhaps your secretary or administrative assistant is a critical employee to keep your business running smoothly.

Would your business suffer a financial loss or suffer a loss in other ways if a key employee suddenly passed away? If so, you may need key employee life insurance protection.

Key employee life insurance provides the business owner the ability to continue their business uninterrupted. It can provide almost instant cash that allows you to hire a new employee or protect a business from being unable to get a loan.

Does the owner need key employee life insurance?

It’s pretty obvious to most business owners,  but others forget that they are the key to the success of their business. If you or one of the owners dies it puts the entire business in flux. And, what is the one biggest need at the time of this flux?

That’s right, cash. Cash helps keep the business stay afloat while determining how to continue to operate the business. If a business owner passes away then cash needs to be available immediately.

Think about, employees still need to get paid. Insurance and other benefits still need to be paid for. Would a bank want to loan money to a business if one of the key owners has passed away.

Perhaps money will be needed to buy-out other partners.

How do you qualify for key employee life insurance?

As with any type of life insurance, the key employee will have to go thru underwriting from an insurance company. Underwriting is the process of determining if you qualify for the coverage.

Things that come into play during underwriting are the person’s age, health, tobacco status, income, occupation, etc.

Typically a life insurance carrier will allow an individual to apply for up to 10-20 times their income. So, if someone has a salary of $100,000 it would be pretty easy to purchase a $1MM life insurance policy.

What type of policy do key employees purchase?key employee life insurance

Most key person life insurance policies are level term life policies. Level term life policies are the lowest cost plans. They purchase the largest amount of death benefit for the lowest rate. Level term life policies can typically lock in level rates for periods of 10, 15, 20 or even 30 years.

Since all life insurance carriers look at health and lifestyle differently it is important to pick the correct carrier. One of the best ways to find out which carrier will offer the lowest rate is by using an independent agent.

Independent agents typically represent dozens of carriers. The agent will know also which one might underwrite most favorable for the particular situation you are facing.

As an example, one company may underwrite term life policies better for individuals with a history of cardiovascular disease.

Who is the owner and beneficiary of a key employee life policy?

In most every case, the business will own the policy and the business will be the beneficiary. So, as an example let’s say you have ABC Cleaning Company and they wish to take out a key employee life policy on one of their owners Mr. John Doe.

Mr. Doe would be the insured, ABC Cleaning would own and pay the premiums and ABC Cleaning would receive any benefits when Mr. Doe passes away.


So, do you need key employee life insurance or do you need to protect your business by purchasing coverage on one or several key employees? You can learn more about life insurance here or for free consultation you can reach us at 1-678-207-8160 or

For a FREE quote

Call, text, email or fill out our instant quote form:

Call: 678-207-8160
Text: 678-207-8160
Instant quote form: Click here

How can I help?

Mike Raines

I am an independent life insurance agent with over 30 years’ experience. I am an expert in finding coverage for those with past or current medical history such as heart disease, diabetes, post cancer, etc. I also specialize in those that participate in scuba diving, mountain climbing, private pilots, etc. I work with the best life insurance companies in the nation, such as Prudential, AIG, Protective Life, Transamerica to name a few. Each carrier has different opinions on rates and underwriting, and it is my job to match you with the best company. To do that, I need to ask you a few questions about your health and lifestyle to qualify you.

For a FREE quote, call, text or email:

Call: 678-207-8160

Text: 678-207-8160


Mailing Address:
3482 Keith Bridge Road Suite #125
Cumming, GA 30041


It’s not easy to find life insurance with a chronic condition such as crohn’s disease which is why I greatly appreciated having Mike on my team. Mike is responsive, patient, professional and indefatigable- all things you need when you’re looking for a competitive policy. Knowing my family will be taken care is not only a relief but a huge confidence boost and I’m thankful Mike works in the special risk insurance arena. I would absolutely work with him again. Thank you Mike!

- Bobby from Washington D.C.

I tried several places before I came across Mike’s website. The insurance at these other places was either very expensive, or the company wouldn’t cover me because of my health history. Mike was able to find me a reasonably priced policy with a major insurer. He did a great job locating a policy that works well for me.

- Jeff from Hermon, ME.

As part of the process of buying a new business, I needed life insurance. However, my congenital heart defect made agents squirm over the phone. Then I found Mike, who not only understood my situation, but found two solutions for me. Within a week, I had confirmation of an AD&D policy and a Term Life policy…all at very reasonable rates. The sense of relief can’t be underestimated. Thank you, Mike!

- Heather G. From Crestview, Fl.

Mike did an outstanding job getting me my coverage. He went above and beyond answering all my questions. He always returned my calls immediately even on the weekends!!! I highly recommend him.

- Aileen from Woodstock, GA.

As someone with a past cancer diagnosis, finding life insurance had been a huge annoyance. Mike made it easy, and somehow found quotes that were significantly more affordable than what others gave me.

- Matthew from St. Louis, MO.

Thank you very much, Mike, for all your help in this long process. I know it wasn’t easy, but I appreciate you not giving up on my application and helping provide peace of mind to me and my family.

- Craig S. from Savannah, Ga.

Mike was extremely helpful in locating a life insurance company that would accept a preexisting condition at a reasonable price. He saved time by submitting health records to several companies for a quick preview then following up with the one who offered the most reasonable premium. He knows which companies are most likely to accept certain conditions. Throughout the application process Mike was very quick to respond to e mails and phone calls. We highly recommend Mike if you need life insurance and have a preexisting condition.

- Henry R. from Springfield, TN.

Mike and his team made the entire process from start to finish very seamless and also overcame the task with us being multiple states apart with ease. With the easy process and very competitive priced insurance for high risk athletes, you have no need to look anywhere else for coverage. Thanks to Mike and his team for all they did and I highly recommend them for your Special Risk Life Insurance needs.

- Tyler C. from Danville, VT.

Mike and Special Risk Term are absolutely top shelf! I was worried that I would not be able to get term life insurance to protect my family, or that the costs would be exceedingly high.

Mike knew the industry inside and out and knew which companies would provide the best options. He coordinated with the underwriters to get the job done and get me an affordable plan, and kept me updated throughout the entire process. Not to mention he did it all electronically in the age of COVID without ever having to meet in person. Highly recommend. Excellent service and expertise!

- Chris M. from Laguna Niguel, CA.

I contacted Mike for advice with life insurance. I had recently left a large firm (where I had life insurance coverage as part of compensation package) to start my own company.  Therefore I needed to self fund my life insurance.  Because of some past health issues I figured I may need to do extra tests to validate my current excellent health status and insurability.  Mike was great to work with, knowledgeable about how underwriters view things, how they will want lots of data from my doctors, and he explained the normal full battery of new tests and data as well as additional or special tests they might want based on my history.  He helped me through the valley to the other side of the life insured promised land for $500K term policy with a duration that meshes well with my retirement date/options and coverage for my family if needed. I highly recommend Mike with Special Risk Term.  He can help you too, so call or email today.

- Richard M. from Ann Arbor, MI

We work with individuals across the nation to secure the best life insurance rates.

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