Key Person Life Insurance provided by Browne Insurance Services

Most maturing small businesses have a core group of key individuals who are absolutely essential to the profitable operation of the company. The premature death or disability of one of these key people could create negative impacts. Key person insurance is designed to protect your business by giving you the financial resources to regroup and get back on track
What is Key Person Life Insurance?

Key person insurance is a type of life insurance policy that provides a death benefit to a business if its owner or another significant employee passes away

Key person insurance may make sense in many circumstances:


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If the business is a partnership and each partner wants to be able to buy out the other's shares in case of an untimely death.

What does Key Person Life Insurance Cover?

There’s no set formula for deciding the monetary value of your key person insurance. You may want to start by considering the financial effects a key employee’s death would have on your company.

For instance, if you’re a sole proprietor buying key person insurance on yourself, you may want enough coverage to help your heirs close your business and pay off any company debts. If you own a larger company and are insuring a key employee, you may need enough coverage to replace that person’s sales income, for example, or to provide a financial cushion while you search for the employee’s replacement.

Who owns the Key Person Policy and who benefits?

How your policy is structured may depend on your company’s legal structure. Typically, the company pays premiums for the key person policy, and also owns it and is the beneficiary. The key employee must provide consent, in writing, to your company owning the policy.

If you have key people who are irreplaceable or whose contributions are so crucial that without them your business might fail, key person insurance can provide the money necessary to recover and rebuild in the event of their premature death. Connect with us to know more !

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As an independent agency, Browne Insurance Services
Helps you find the right Key Person Life Insurance Coverage
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Palm Springs, CA
190 W Amado Rd Palm Springs, CA 92262
We extend coverage to individuals and businesses in Campbell, Palm Desert, Palm Springs, Pollock Pines, and Santa Clara areas.

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  • Revenue loss
  • Company’s reputation
  • Buying out shares
  • Repay any collateral assignment
  • Business growth

Revenue loss coverage

Risk Factors

A company that suffers a revenue loss because of the death of a key employee (such as a high earning agent at a real estate brokerage).


Key Person Life insurance can be taken to recoup this revenue loss.

Company’s reputation coverage
Risk Factors

Company fails to retain its clients or uphold its reputation based on a particular employee’s skills or name (like a partner at a law firm).


Key Person Life insurance can be taken to retain their clients and to uphold their reputation.

Buying out shares coverage

Risk Factors

A key person of your company dies unexpectedly and company suffers a loss.


Key Person life insurance helps another partner to buy out shares in partnership businesses (like a dental practice) where one partner dies.

Repay any collateral assignment coverage

Risk Factors

A key person before dying had taken a business loan which is still to be paid off.


Key Person life insurance can help to repay any collateral assignment business loans that the key person held or co-signed.

Business growth coverage

Risk Factors

You may need a loan in the near future for the growth of your business.


Key Person life insurance can help you get new business loans and help with other means to grow your business.

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