I'll shop 30+ carriers, learn your operation inside out, and build coverage that grows with you, no scripts, no handoffs, just 30 years of knowing what works.
Your business is more than just a source of income, it's your legacy. Without the right protection, an unexpected loss could jeopardize everything you've built. Business life insurance provides a financial safety net that keeps your company running, your employees secure, and your partners protected.
When a key employee or owner passes away, the financial impact can be devastating. Business life insurance covers the economic loss so your company can stay afloat.
The death of a top producer or key person often means lost clients and revenue. Insurance proceeds bridge the gap, giving you time to hire and rebuild.
Business loans and lines of credit don't disappear when disaster strikes. Life insurance ensures your debts are covered and lenders stay confident.
Keep the doors open and operations running smoothly after a loss. Insurance provides immediate cash to cover payroll, rent, and ongoing expenses.
When a partner dies, their share of the business may pass to heirs who aren't equipped to run it. A funded buy-sell agreement ensures a smooth, fair transition.
Many SBA and commercial lenders require life insurance as a condition of the loan. We help you meet those requirements with the right coverage at competitive rates.
Business life insurance is a policy that a company purchases to protect itself against the financial consequences of losing a key individual, whether that's an owner, partner, or essential employee. Unlike personal life insurance (where the family is the beneficiary), business life insurance names the company as the beneficiary. The proceeds can be used for whatever the business needs: paying off debt, buying out a deceased partner's share, hiring a replacement, or simply keeping operations running during a difficult transition.
At SJL Insurance Agency, we work with 30+ top-rated carriers to find the right coverage for your specific business situation. Whether you're a two-person partnership or a company with dozens of key employees, we'll shop the market to get you the best terms at the best price.
There are three primary strategies for using life insurance to protect a business. The right approach depends on your company's structure, goals, and financial situation.
A policy owned by the business on the life of an individual whose knowledge, relationships, or leadership are critical to the company's success.
A legally binding agreement that determines what happens to a business owner's share if they die, funded by life insurance so the buyout is guaranteed.
Life insurance assigned as collateral for a business loan, giving lenders confidence that the debt will be repaid even if the borrower passes away.
The cost of key person life insurance depends on the insured's age, health, and the coverage amount. Below are sample monthly rates for a healthy non-smoker. These are estimates, get your personalized quote for an accurate price.
| Age | $250,000 Coverage | $500,000 Coverage | $1,000,000 Coverage | $2,000,000 Coverage |
|---|---|---|---|---|
| 30 | $18/mo | $28/mo | $45/mo | $78/mo |
| 35 | $20/mo | $32/mo | $52/mo | $92/mo |
| 40 | $24/mo | $40/mo | $68/mo | $124/mo |
| 45 | $32/mo | $56/mo | $98/mo | $182/mo |
| 50 | $44/mo | $80/mo | $146/mo | $276/mo |
| 55 | $62/mo | $116/mo | $216/mo | $412/mo |
| 60 | $96/mo | $182/mo | $346/mo | $668/mo |
Rates shown are for a 20-year term policy, preferred plus health class, non-smoker. Actual rates vary by carrier and underwriting. Updated 2026.
Business life insurance isn't just for large corporations. If your business depends on specific people, including yourself, you need coverage.
If you're the driving force behind your company, your departure would leave a massive gap. Key person insurance buys your business the time and resources it needs to survive.
Without a funded buy-sell agreement, a partner's death can mean their spouse or children become your new business partner. Life insurance prevents this scenario.
Doctors, dentists, attorneys, and CPAs, your practice's value is tied directly to you. Protect what you've built and ensure your partners or family receive fair value.
Top salespeople, technical experts, and senior managers are hard to replace. Insure against the cost of losing them, recruiting, training, and lost business.
Lenders often require life insurance as collateral. We help you satisfy those requirements without overpaying or overcomplicating the process.
Passing a family business to the next generation requires careful planning. Life insurance provides liquidity for estate taxes and equalization among heirs.
Getting business life insurance is straightforward. Here's the process:
We'll discuss your company structure, key people, and what you're trying to protect. No obligation, just a conversation to understand your needs.
As an independent broker, we shop the market for you. We'll present the best options with clear pricing so you can make an informed decision.
Once you choose a policy, we handle the paperwork. Your business is protected, and we're here to review your coverage as your company grows.
We've helped businesses across the country protect what they've built. Here's what sets us apart.
The business typically owns the policy, pays the premiums, and is the beneficiary. For key person insurance, the company owns the policy on the key employee. For buy-sell agreements, the business entity or individual partners may own the policies, depending on the structure (cross-purchase vs. entity-purchase). Your CPA or attorney can help determine the optimal ownership structure.
Generally, life insurance death benefits received by a business are income-tax-free under IRC Section 101(a). However, there are exceptions, particularly for C corporations where the proceeds may be subject to the Alternative Minimum Tax (AMT). The premiums are typically not tax-deductible as a business expense. Always consult your tax professional for advice specific to your situation.
The right amount depends on several factors: the key person's contribution to revenue, the cost to replace them (recruiting, signing bonus, training), any business debt they personally guarantee, and the estimated time to recover lost business relationships. A common starting point is 5-10x the key person's annual compensation. We'll help you calculate the right amount based on your specific business.
In a cross-purchase agreement, each owner buys a life insurance policy on every other owner. When an owner dies, the surviving owners use the proceeds to buy the deceased's share directly. In an entity-purchase (or stock redemption) agreement, the business itself buys policies on each owner and uses the proceeds to redeem the deceased's interest. Cross-purchase can offer tax advantages (stepped-up basis), while entity-purchase is simpler to administer, especially with 3+ owners.
To purchase life insurance on an employee, the business must have an insurable interest, meaning the company would suffer a financial loss if that person died. This typically applies to owners, partners, and key employees whose contributions are critical. The employee must consent to the policy and undergo medical underwriting. Routine rank-and-file employees generally don't qualify for key person coverage.
Getting started is easy! Request a free quote or call us at 214-272-2769. We'll ask a few questions about your business structure, key people, and what you're trying to protect. We'll then shop our network of 30+ carriers to find the best coverage at the best price. There's no cost for quotes and no obligation to buy, just honest, expert advice.