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Key person insurance is life insurance on the key person in a business. This is the person who is crucial to a business, such as the owner, founder, or major employee — the one whose absence would cause financial distress to the company.

Businesses can purchase corporate-owned life insurance on the lives of their key people. If one of these key people dies, the business receives a tax-free death benefit which it can use to meet expenses and repay debts, thereby easing the fears of creditors.

The money can also be used as a reserve against the drop in revenue that may occur while the company goes through a period of transition. Finally, the money can be used to pay the costs of replacing the lost skills. Just ask Gateway.

Representing Canada’s Leading Insurers

  • McLean Hallmark Gateway Trisura Intact Insurance RSA Group
  • Portage Mutual Insurance Aviva Insurance Manulife Financial
  • Canada Life World Source Financial Management Travelers Canada
  • Great West Life Desjardins Northbridge Insurance