Key Person Life Insurance

Key person life insurance is a policy a business takes out on the life of an individual who is essential to the company’s success—such as an owner, partner, top executive, or a highly skilled employee whose knowledge, relationships, or expertise would be difficult to replace. The business owns the policy, pays the premiums, and is named as the beneficiary.

If the insured key person passes away, the policy’s death benefit is paid directly to the company. Those funds can help the business:

• Cover lost revenue or profits while it recovers
• Pay for recruiting, hiring, and training a replacement
• Reassure creditors, investors, and employees during a transition
• Support buy-sell agreements or ownership changes, if applicable

Key person life insurance is not about personal coverage for the employee—it’s about protecting the business from the financial impact of losing someone whose role is critical to ongoing operations and future growth. For many small and mid-sized businesses, this coverage is a strategic way to manage risk and help ensure continuity if the unexpected happens.

The primary purpose of individual life insurance is to provide a death benefit to the beneficiaries you name. This tax-advantaged benefit can help your loved ones cover living expenses, pay off debts, handle final expenses, or meet long-term financial goals if you pass away.

Individual policies are available in several forms—such as term life, whole life, or universal life—each with different options for coverage length, premium structure, and potential cash value. Because the policy is in your name and not tied to your employer, your coverage can stay with you even if you change jobs, retire, or move.

For many people, individual life insurance offers greater flexibility, control, and long-term security than relying on group life coverage alone.

Erie Insurance has been providing the protection you need and the service you expect, all at a great price. See why more than 90% of customers stay with Erie Insurance year after year.