Key Person Cover

Key Person Cover refers to an Indexed Universal Life insurance policy that is purchased by a business to protect against the financial loss that may occur due to the sudden death, disability, or incapacitation of a crucial employee, often a top executive or a specialist whose contributions are vital to the company's success. In an IUL policy, the death benefit would be paid out to the business tax-free, and the policy may also accumulate cash value based on the performance of a chosen stock index, without directly participating in the market. This cash value can be accessed by the business for various needs, providing additional financial flexibility.