Skip to main content
Back to Solutions
Business Owners

Protect your business from losing the people who run it.

For business owners who recognize that certain people are irreplaceable, and want a financial safety net if something unexpected happens.

Schedule a Free Consultation

Every business has people it cannot afford to lose.

There's likely someone on your team (a founder, a top salesperson, a critical operator) whose absence would immediately threaten your revenue, your client relationships, or your ability to function.

What happens to your business if that person dies or becomes permanently disabled tomorrow? Without a plan, the answer is chaos: lost clients, disrupted operations, and no capital to replace the lost expertise or productivity.

Most business owners acknowledge this risk. Very few have addressed it.

The Solution

Key Man Insurance gives your business the capital to survive and recover.

Key Man Insurance (also called Key Person Insurance) is a life and/or disability policy taken out by the business on its most critical employees. If that person passes away or becomes unable to work, the policy pays a benefit directly to the business.

Those funds can be used to recruit and train a replacement, pay down debt, reassure lenders and investors, or simply keep the lights on while you stabilize.

What you gain working with us.

  • Financial protection if a key employee dies or becomes permanently disabled
  • Capital to recruit, hire, and train a qualified replacement
  • Business continuity reassurance for lenders, investors, and clients
  • Protection of revenue streams tied to a specific individual's relationships
  • Buy-sell agreement funding for partnerships and co-owned businesses

How it works.

01

Key Person Identification

We help you identify which individuals represent the greatest financial risk to your business if lost.

02

Coverage Calculation

We calculate an appropriate coverage amount based on revenue contribution, replacement cost, and business obligations.

03

Policy Design

We structure and place the right policy (life, disability, or both) to protect your business from multiple scenarios.

04

Buy-Sell Integration

If you have business partners, we coordinate Key Man coverage with your buy-sell agreement to ensure a clean succession plan.

Why clients choose Anchor.

Veteran-Owned

We understand mission-critical roles. We help you protect the people your business depends on with the same seriousness we applied to our own service.

Business Planning Specialists

Key Man coverage is just one tool in a complete business protection strategy. We help you see the full picture.

Buy-Sell Coordination

We work alongside your attorneys and accountants to ensure your Key Man policy aligns with your business succession plan.

Multi-Carrier Access

We shop coverage across multiple carriers to find the best terms and pricing for your specific situation.

Frequently asked questions.

Who qualifies as a 'key person'?
A key person is typically an owner, partner, top salesperson, or executive whose departure would materially harm the business. This includes anyone whose knowledge, relationships, or skills are critical to operations and revenue.
How much Key Man coverage does my business need?
Coverage amounts are typically based on the individual's contribution to revenue, the cost to recruit and train a replacement, and any outstanding business obligations (loans, leases, contracts). We calculate the appropriate amount based on your specific situation.
Who owns the policy and receives the benefit?
The business owns the policy, pays the premiums, and is the named beneficiary. The benefit is paid to the business (not the employee's family) when a covered event occurs.
Is Key Man insurance tax deductible?
Generally, Key Man insurance premiums are NOT tax deductible, and the death benefit is usually received tax-free by the business. However, tax treatment can vary based on policy structure and corporate entity type. We recommend consulting your CPA alongside our planning process.
Can Key Man insurance also fund a buy-sell agreement?
Yes. This is one of the most common and effective uses of Key Man coverage, especially for co-owned businesses. When structured correctly, the death benefit provides the surviving partner(s) with the funds needed to purchase the deceased partner's share of the business.

Let's build a strategy that fits your situation.

Schedule a Free Consultation