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Key Person Insurance

Protect What Your Business Can't Afford to Lose

Every business has people who are irreplaceable. Key Person Insurance ensures that losing a critical team member — to death or disability — doesn't threaten the entire business.

98%

of Canadian businesses are small businesses — few have formal succession plans

3–5×

annual salary is a common key person insurance benchmark

Tax-Free

death benefit received by the corporation upon key person death

6–12 mo.

average time to recruit and train a replacement senior executive

Coverage & Strategies

Tap the icon for details on each coverage type and strategy.

Key Person Life Insurance

Death benefit paid to the business if a key person dies

Key Person Disability Insurance

Monthly benefit if a key person becomes disabled and can't work

Business Loan Protection

Covers outstanding business debt if a key person dies or is disabled

Buy-Sell Agreement Funding

Life insurance that funds partner buyouts on death or disability

Executive Compensation Plans

Tax-advantaged benefits designed for key executives

Business Succession Planning

Structured transfer of business ownership upon death or retirement

How Much Coverage Do You Need?

Lost Revenue Rule

Estimate 1–2 years of revenue the key person generates or influences.

Replacement Cost Rule

Recruitment, training, and onboarding a replacement: 6–12 months salary.

Debt & Loan Coverage

Outstanding business loans or lines of credit guaranteed by the key person.

Buy-Sell Valuation

Based on the fair market value of the departing partner's share.

Which Businesses Need Key Person Insurance?

Professional practices (law, accounting, medicine, dentistry)
Family businesses where one person holds all relationships
Tech startups with a critical founder or developer
Sales-driven businesses dependent on a top producer
Any business with outstanding bank loans
Partnerships where one partner's exit could trigger dissolution

Protect Your Business

Marie will assess your business structure, identify key risks, and recommend the right coverage — coordinating with your accountant and legal team where needed.