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Business Owner Death and Complex Estates

What is a key person insurance policy?

Short answer

Life insurance taken out by a business on a key employee or owner, payable to the business. If the deceased had such a policy, the business receives the benefit — not the family. The proceeds can help stabilize the business during transition…

What this usually means

Life insurance taken out by a business on a key employee or owner, payable to the business. If the deceased had such a policy, the business receives the benefit — not the family. The proceeds can help stabilize the business during transition. Check with the company's insurance broker.

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