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Insurance
Founder protection · lender requirement

Get key person insurance. Protect the business if a critical person is gone.

Key person insurance is life insurance owned by the business on the life of a founder, executive, or critical employee whose death would significantly hurt the business. The death benefit (paid to the company) provides cash to recruit a replacement, cover lost revenue, pay debts, or buy out the deceased's equity. Often required by lenders or investors before they extend credit or invest.

All 50 states + DC 60-day money-back SOC 2 Type II
How it works

How we handle Key Person Insurance, end-to-end.

Key person insurance is life insurance owned by the business on the life of a founder, executive, or critical employee whose death would significantly hurt the business.

1

Coverage need

We assess: who is the key person (founder, exec, critical engineer)? What is the financial impact of their loss (lost revenue, replacement cost, equity buyout)? How much coverage closes that gap?

2

Term vs. permanent

Term life is cheapest and most common (10, 20, 30 year). Permanent (whole, universal) builds cash value but is much more expensive. Most key person policies are term.

3

Medical underwriting

Key person is the insured; the business is the owner and beneficiary. Insured undergoes medical underwriting. Standard or preferred rates depend on health.

4

Bind + premium

Bind with chosen carrier. Premium paid by the business; death benefit paid to the business. Tax treatment: premiums not deductible, death benefit generally not taxable.

What we'll set up for you

A clean handoff, in four steps.

You give us the basics. We handle the state, the IRS, and the compliance clock so you can focus on the business.

01 · Name + Brand

A name that's actually available.

Real-time check against the state register, USPTO trademark database, and matching domains.

02 · State filing

Filed with the Secretary of State.

We submit your Articles, pay the state fee on your behalf, and return the stamped certificate.

03 · Federal IDs

EIN + the right tax setup.

Federal Employer ID with the IRS, plus state tax accounts when your business needs them.

04 · Stay compliant

Registered Agent + deadline tracking.

Your agent on file in every state, with every renewal and annual report tracked in one calendar.

Pricing

Transparent key person insurance pricing.

Government fees pass through at cost. No upsells.

Multiple key person

$0
Coordinated quotes for team.

For companies insuring multiple key persons (founder + co-founder + critical engineer). Coordinated quotes from multiple carriers. Volume discount sometimes available.

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Buy-sell funding

$0
Coordinated with shareholder agreement.

Life insurance structured to fund a buy-sell agreement: death triggers automatic equity buyout from estate. We coordinate the insurance with the legal documents.

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FAQ

About the Key Person Insurance Service.

What is key person insurance?
Key person insurance is a life or disability policy a business takes out on an owner or essential employee, with the company as beneficiary, so it has funds to weather the loss of someone the business depends on. It matters for small companies reliant on one or two people, and we flag it as part of planning your business.
Who needs key person insurance?
Businesses that would be seriously disrupted by the death or disability of a founder, top salesperson, or essential technical person, especially small companies where one person drives much of the revenue or holds critical knowledge. We flag it when your business has that kind of concentration risk.
What does key person insurance cover?
It pays the business a benefit if the insured key person dies or, with disability coverage, becomes unable to work, giving the company cash to cover lost revenue, recruit a replacement, or reassure lenders and investors. We flag how it fits your business's risk and succession planning.
Why would the company, not the individual, own the policy?
Because the loss being insured is the business's, not the family's: the company pays the premiums and receives the benefit to stabilize operations, which is different from the key person's own personal life insurance. We flag how to structure ownership so it serves the business purpose.
Do lenders or investors require it?
Sometimes: a lender or investor relying on a specific founder may require key person coverage as a condition, so the business is protected if that person is lost. We flag it as part of getting your company financing- or investor-ready when there is founder concentration.
How is key person insurance different from D&O?
Key person insurance protects the business financially against losing an essential person, while D&O protects directors and officers against claims over their decisions. They address entirely different risks, and a company may want both.
How much coverage should the business carry?
Enough to cover the revenue and costs the business would face while replacing or recovering from the loss of that person, which depends on their role and the company's finances. We flag it as part of your risk planning so the amount reflects the real exposure.
Is this relevant for a single-owner business?
It can be: if the entire business depends on you, key person or its cousin, adequate personal coverage, matters for anyone relying on the business, including partners, lenders, or your family. We flag succession and continuity considerations when setting up an owner-dependent business.
Can File.Business help with business continuity planning?
We form the entity and flag the continuity risks, key person concentration, succession, and the coverage that addresses them, so your business's dependence on essential people is considered as part of building it, not after a loss.
SOC 2 Type II audited
220,000+ businesses. 60-day money-back. State fees passed through at cost.
Your operating system, not a transaction
Every deadline auto-tracked across your entities. Compliance Score visible year-round.
Transparent pricing
No hidden fees. No upsells at checkout. State fees disclosed upfront.

Start your business in the next 5 minutes.

No state-fee markup. Pay only the state fee. 60-day money-back guarantee.

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