Key Person Insurance

You are on: Overview

Why is key person insurance important for your business?

Does your business include someone whose contribution is vital to the survival of your company? If yes, then key person insurance should be a part of your business continuity and succession plan—especially if you're a small business owner.

If a key member of your team passes away or becomes disabled, your bottom line may suffer in the short-term, and over the long-term, you may have to find a replacement or even shut down your business. However, with the benefits payable from a key person life or disability insurance plan, you could:

• Recruit, hire and train a replacement
• Pay off debt and deal with creditors
• Alleviate lenders' concerns about your company's financial health
• Reassure customers, employees and investors that the business will continue operating

What's more, if you and your family rely on your business as a primary source of income, key person insurance can help ensure that the business will continue to provide a secure financial future.

Find out more:

• Key Person Life Insurance
  Give your business the financial protection it would need to survive the death of a key employee.
• Key Person Disability Insurance
  Ensure that your business could continue operating should a key person become temporarily or permanently disabled and unable to work.

You are on: Key Person Life Insurance

Key Person Life Insurance

If an insured key employee or owner were to die, the RBC Insurance^® key person life insurance policy would provide a tax-free cash payment that your business could use as working capital; to recruit, hire and train a replacement; to pay off debts; and much more.

Key Features and Benefits:

• A wide range of life insurance coverage amounts are available
• We offer several term and permanent life insurance plans that are ideal for protecting your business against the loss of a key person
• Life insurance premiums are not tax-deductible; however, the life insurance proceeds are tax-free. What's more, the cost of this invaluable insurance protection is low when compared to the value of your key person.

You are on: Key Person Disability Insurance

Key Person Disability Insurance

If an owner, co-owner or a key person became disabled, your business could be faced with the same financial situation as if the person had died—but no life insurance policy would pay out.

However, with a key person disability insurance policy you could use the monthly cash benefit as working capital; to recruit, hire and train a replacement; to pay off debts; and much more.

Key Features and Benefits:

• The person being insured must be between ages 18 and 55
• The policy can be maintained until the insured reaches age 62 or terminates full-time employment with your business for reasons other than total disability
• The minimum benefit payable is $2,500 per month for 12 months, with a maximum benefit of $15,000 per month for 12 months
• Benefits can start after either 60 or 90 days of total disability

You are on: FAQs

Questions and Answers about Key Person Insurance

What kind of employee would be a key person?

Why is key person insurance so important?

How long does key person life insurance provide protection?

How long does key person disability insurance provide protection?

What is the definition of "total disability" for key person disability insurance?