{"id":11397,"date":"2026-11-07T04:59:12","date_gmt":"2026-11-07T04:59:12","guid":{"rendered":"https:\/\/nrcpas.com\/life-insurance-guides\/key-person-insurance\/explain-key-person-insurance-to-employees-and-co-owners\/"},"modified":"2026-11-07T04:59:20","modified_gmt":"2026-11-07T04:59:20","slug":"explain-key-person-insurance-to-employees-and-co-owners","status":"publish","type":"page","link":"https:\/\/nrcpas.com\/life-insurance-guides\/key-person-insurance\/explain-key-person-insurance-to-employees-and-co-owners\/","title":{"rendered":"Key Person Insurance: Explaining It to Staff in Florida"},"content":{"rendered":"\n<div class=\"wp-block-cover alignfull is-dark chg-hero\" style=\"min-height:460px;aspect-ratio:unset;\"><span aria-hidden=\"true\" class=\"wp-block-cover__background has-background-dim-70 has-background-dim wp-block-cover__gradient-background has-background-gradient\" style=\"background:linear-gradient(90deg,rgba(32,36,46,1) 0%,rgba(32,36,46,1) 55%,rgba(32,36,46,0.7) 100%)\"><\/span><img class=\"wp-block-cover__image-background wp-image-11394\" alt=\"A senior operations manager reviews production schedules at a workstation in a manufacturing facility while colleagues work nearby.\" src=\"https:\/\/nrcpas.com\/life-insurance-guides\/wp-content\/uploads\/2026\/11\/a-senior-operations-manager-reviews-production-schedules-at-photo-28.jpg\" width=\"1376\" height=\"768\" srcset=\"https:\/\/nrcpas.com\/life-insurance-guides\/wp-content\/uploads\/2026\/11\/a-senior-operations-manager-reviews-production-schedules-at-photo-28-150x150.jpg 150w, https:\/\/nrcpas.com\/life-insurance-guides\/wp-content\/uploads\/2026\/11\/a-senior-operations-manager-reviews-production-schedules-at-photo-28-300x167.jpg 300w, https:\/\/nrcpas.com\/life-insurance-guides\/wp-content\/uploads\/2026\/11\/a-senior-operations-manager-reviews-production-schedules-at-photo-28-768x429.jpg 768w, https:\/\/nrcpas.com\/life-insurance-guides\/wp-content\/uploads\/2026\/11\/a-senior-operations-manager-reviews-production-schedules-at-photo-28-1024x572.jpg 1024w, https:\/\/nrcpas.com\/life-insurance-guides\/wp-content\/uploads\/2026\/11\/a-senior-operations-manager-reviews-production-schedules-at-photo-28.jpg 1376w\" sizes=\"(max-width: 825px) 825px, 100vw\" fetchpriority=\"high\" decoding=\"async\"\/><div class=\"wp-block-cover__inner-container has-global-padding is-layout-constrained wp-block-cover-is-layout-constrained\">\n<p class=\"chg-eyebrow has-base-color has-text-color wp-block-paragraph\" style=\"text-shadow:0 1px 3px rgba(0,0,0,0.6),0 0 18px rgba(0,0,0,0.35)\">Key Person Insurance | Florida Businesses<\/p><h1 class=\"wp-block-heading has-base-color has-text-color\" style=\"text-shadow:0 1px 3px rgba(0,0,0,0.6),0 0 18px rgba(0,0,0,0.35)\">Explaining Key Person Insurance to Your Staff in Florida<\/h1><p class=\"has-base-color has-text-color wp-block-paragraph\" style=\"font-size:clamp(0.875rem, 0.875rem + ((1vw - 0.2rem) * 0.625), 1.25rem);text-shadow:0 1px 3px rgba(0,0,0,0.6),0 0 18px rgba(0,0,0,0.35)\">A plain-language guide for Florida business owners on what key person insurance is, how the policy works, and how to talk with your team about it. Insurance is offered by licensed agent Nischay Rawal, separately from the accounting practice of NR CPAs &amp; Business Advisors.<\/p><div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\"><div class=\"wp-block-button chg-cta chg-cta-call\"><a class=\"wp-block-button__link wp-element-button\" href=\"tel:+13058723096\">Call us today to schedule a coverage review<\/a><\/div><div class=\"wp-block-button chg-cta chg-cta-form\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/nrcpas.com\/contact\">Call us today to schedule a coverage review<\/a><\/div><\/div>\n<\/div><\/div>\n\n\n<p class=\"wp-block-paragraph\" style=\"font-size:0.85rem;color:#6b7280;margin-bottom:1.5rem\">By Nischay Rawal \u00b7 Published November 6, 2026<\/p>\n\n<article lang=\"en\">\n\n\n<p>To explain key person insurance to employees, say three things. The business owns the policy, pays the premiums, and receives the death benefit. The policy protects the company, not the employee. This page covers what to say, what to leave out, and the Florida rules that apply. For background, see our <a href=\"\/life-insurance-guides\/key-person-insurance\/\">key person insurance guide<\/a>.<\/p>\n<h2>What is a key person insurance policy?<\/h2>\n<p>Key person insurance is a life insurance policy that a business owns and pays for on a person whose work matters to the company. The <a href=\"https:\/\/www.iii.org\/publication\/insuring-your-business-small-business-owners-guide-to-insurance\/specific-coverages\/life-insurance-for-key-employees\">Insurance Information Institute guide<\/a> describes it as coverage that compensates a business for financial losses caused by a key employee&#8217;s death or disability.<\/p>\n<p>There are three roles, and each one has a plain meaning:<\/p>\n<ul>\n<li><strong>Policy owner:<\/strong> the business. It applies for the policy and controls it.<\/li>\n<li><strong>Insured:<\/strong> the key person. The policy insures this person&#8217;s life.<\/li>\n<li><strong>Beneficiary:<\/strong> the business. It receives the death benefit.<\/li>\n<\/ul>\n<p>The employee doesn&#8217;t own the policy and doesn&#8217;t receive the death benefit. The policy can be written as whole life or term life. Whole life lasts as long as premiums are paid and builds cash value. Term life covers a set period. The business chooses the form that fits its goals.<\/p>\n\n<div class=\"cta-dose-mid wp-block-group has-base-color has-accent-background-color has-text-color has-background has-global-padding is-layout-constrained wp-container-core-group-is-layout-32197852 wp-block-group-is-layout-constrained\" style=\"background-color:var(--wp--preset--color--accent,#20242e);color:var(--wp--preset--color--base,#ffffff);border-radius:8px;padding-top:1.5rem;padding-bottom:1.5rem;padding-left:1.5rem;padding-right:1.5rem;border-left:6px solid var(--wp--preset--color--cta,currentColor);box-shadow:0 2px 10px rgba(0,0,0,0.18)\">\n<p class=\"wp-block-paragraph\">If you need to explain a key person policy to a manager or co-owner, reach out and we can set up a coverage review of your situation. Talk it through with our team &#8212; we can walk you through how a situation like yours is usually handled and what your options are.<\/p><div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\"><div class=\"wp-block-button chg-cta-call\"><a class=\"wp-block-button__link wp-element-button\" href=\"tel:+13058723096\">Schedule a coverage review<\/a><\/div><div class=\"wp-block-button chg-cta-form\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/nrcpas.com\/contact\">Schedule a coverage review<\/a><\/div><\/div>\n<\/div>\n\n<figure class=\"wp-block-image size-large has-custom-border\"><img decoding=\"async\" src=\"https:\/\/nrcpas.com\/life-insurance-guides\/wp-content\/uploads\/2026\/11\/a-gray-haired-bearded-man-in-casual-clothes-stands-by-a-tabl-photo.jpg\" alt=\"A gray-haired, bearded man in casual clothes stands by a table with a laptop, presenting ideas to colleagues in a modern boardroom.\" style=\"border-radius:8px;width:100%;aspect-ratio:16\/9;object-fit:cover\"\/><\/figure>\n<h2>The short answer: the policy protects the business, not the employee<\/h2>\n<p>The death benefit goes to the business. The company can use it to handle the financial impact of losing that person&#8217;s work. That can mean recruiting, training a replacement, or covering lost revenue while the business adjusts.<\/p>\n<p>The benefit is not wages, severance, or a retirement benefit for the employee. Don&#8217;t describe it as something the employee gets or joins. Say that the company owns the policy on that role.<\/p>\n<p>Many confusions start with the words &#8220;life insurance.&#8221; Staff often assume the policy is for their own family. Clear wording prevents that, and it keeps the explanation accurate.<\/p>\n<h2>What to tell employees and the key person<\/h2>\n<p>To explain key person insurance to employees, keep the message short and accurate. A simple script works: &#8220;The company owns a life insurance policy on your role. The company is the beneficiary. The policy does not change your pay, your job, or your benefits.&#8221; Adjust the wording to the actual facts.<\/p>\n<p>Florida law sets consent rules. Under Florida law, a business entity has an insurable interest in its key employees or key persons if their written consent is obtained before the insurance is purchased. A key employee or key person means someone whose position or compensation is described in s. 101(j)(2)(A)(ii) of the Internal Revenue Code. Questions about insurable interest often come up in key person planning, and the licensed agent can explain how the concept applies to a particular situation. The business also may not retaliate against someone who refuses to consent, under <a href=\"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&amp;URL=0600-0699\/0627\/Sections\/0627.404.html\">Fla. Stat. \u00a7 627.404<\/a>. Get the written consent on or before the time the contract is entered into, not after. <a href=\"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&amp;URL=0600-0699\/0627\/Sections\/0627.404.html\">Fla. Stat. \u00a7 627.404<\/a> reads: &#8220;(5) A contract of insurance upon a person, other than a policy of prepaid funeral contract; group life insurance; or group or blanket accident, health, or disability insurance, may not be carried out unless, on or before the time of entering into such contract, the person insured, having legal capacity to contract, applies for or consents in writing to the contract and its terms, except that any person having an insurable interest in the life of a minor younger than 15 years of age or any person upon whom a minor younger than 15 years of age is dependent for support and maintenance may obtain a policy of insurance on the minor.&#8221;<\/p>\n<p>Health questions are usually part of underwriting. Issue depends on insurability. Tell the key person this before the process starts, so the health questions don&#8217;t come as a surprise.<\/p>\n<p>Decide in advance what the business will share. Most owners share the policy&#8217;s existence, its purpose, and who the beneficiary is. Policy amounts and cash-value details usually stay within the owners and the people who keep the company&#8217;s records.<\/p>\n<h2>What to tell co-owners and how buy-sell coverage fits<\/h2>\n<p>Co-owners need to know who owns each policy, who pays the premiums, and who receives the death benefit. Buy-sell agreement insurance is often used to fund a buyout of a deceased owner&#8217;s share under the agreement&#8217;s terms.<\/p>\n<p>There are two common structures, and the written agreement decides which one applies:<\/p>\n<ul>\n<li><strong>Entity purchase:<\/strong> the business owns policies on each owner and is the beneficiary.<\/li>\n<li><strong>Cross-purchase:<\/strong> each owner owns a policy on the other owners and receives the benefit.<\/li>\n<\/ul>\n<p>Explain the structure in plain words before anyone signs. Buy-sell coverage is a business planning tool. Review the policy amounts together with the written agreement so the two match.<\/p>\n<h2>What the key person policy does not do<\/h2>\n<p>A key person policy does not pay the employee, replace pay, or replace pension or health benefits. The employee has no claim on the death benefit.<\/p>\n<p>It is not employee life insurance. The employee is the insured, not the policy owner or the beneficiary.<\/p>\n<p>The death benefit does not guarantee the business will survive a loss or keep its profits. It is one tool for planning around a loss.<\/p>\n<p>The policy has limits and exclusions. The written contract sets them out. Review them before describing the coverage to anyone, so the explanation matches the contract.<\/p>\n<h2>Sharing the facts accurately, and the tax points for owners<\/h2>\n<p>Describe key person insurance as a business-owned life insurance policy. Don&#8217;t call it an investment, a savings plan, or a promise of returns.<\/p>\n<p>Whole life values have guaranteed and non-guaranteed parts. Dividends, where a policy pays them, are not guaranteed. Say so whenever you mention cash value or dividends.<\/p>\n<p>On taxes, premiums are generally not deductible when the taxpayer is a beneficiary. <a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/26\/264\">26 U.S.C. \u00a7 264<\/a> bars a deduction for premiums on any life insurance policy when the taxpayer is directly or indirectly a beneficiary. Under <a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/26\/101\">26 U.S.C. \u00a7 101<\/a>, death benefits are generally excluded from gross income, subject to exceptions. Employer-owned policies also fall under special rules in <a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/26\/101\">\u00a7 101(j)<\/a>. Tax results depend on the facts, so confirm them before you rely on them.<\/p>\n<p>Our team&#8217;s CPA view covers tax and cash flow. Insurance is offered by the licensed agent, separately from the accounting practice.<\/p>\n\n<div class=\"cta-dose-mid wp-block-group has-base-color has-accent-background-color has-text-color has-background has-global-padding is-layout-constrained wp-container-core-group-is-layout-32197852 wp-block-group-is-layout-constrained\" style=\"background-color:var(--wp--preset--color--accent,#20242e);color:var(--wp--preset--color--base,#ffffff);border-radius:8px;padding-top:1.5rem;padding-bottom:1.5rem;padding-left:1.5rem;padding-right:1.5rem;border-left:6px solid var(--wp--preset--color--cta,currentColor);box-shadow:0 2px 10px rgba(0,0,0,0.18)\">\n<h3 class=\"wp-block-heading has-base-color has-text-color\">Not sure what your next step is?<\/h3><p class=\"wp-block-paragraph\">Talk it through with our team &#8212; we can walk you through how a situation like yours is usually handled and what your options are.<\/p><div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\"><div class=\"wp-block-button chg-cta-call\"><a class=\"wp-block-button__link wp-element-button\" href=\"tel:+13058723096\">Schedule a coverage review<\/a><\/div><div class=\"wp-block-button chg-cta-form\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/nrcpas.com\/contact\">Schedule a coverage review<\/a><\/div><\/div>\n<\/div>\n\n<figure class=\"wp-block-image size-large has-custom-border\"><img decoding=\"async\" src=\"https:\/\/nrcpas.com\/life-insurance-guides\/wp-content\/uploads\/2026\/11\/a-diverse-group-of-colleagues-collaborating-around-a-table-i-photo.jpg\" alt=\"A diverse group of colleagues collaborating around a table in a modern office.\" style=\"border-radius:8px;width:100%;aspect-ratio:16\/9;object-fit:cover\"\/><\/figure>\n<h2>Talk to us about your coverage review<\/h2>\n<p>If you must explain a key person policy to a manager, staff member, or co-owner, a coverage review is a good place to start. You want the facts stated accurately before that conversation happens. This applies to Florida owners in Miami, Fort Lauderdale, West Palm Beach, Orlando, Tampa, and Jacksonville, including Indian-American and NRI owners.<\/p>\n<p>Nischay Rawal is the responsible licensed insurance agent for this page. When he discusses insurance products and insurers, he acts as a licensed insurance agent. A coverage review is a conversation about your situation. It doesn&#8217;t promise any approval, outcome, or result.<\/p>\n<p>Fees for a coverage review are disclosed in writing before any work begins. To request a coverage review, visit <a href=\"https:\/\/nrcpas.com\/contact\">our contact page<\/a>.<\/p>\n<h3>Common questions<\/h3><details class=\"wp-block-details chg-faq is-layout-flow wp-block-details-is-layout-flow\"><summary>Does the employee get the death benefit?<\/summary><p class=\"wp-block-paragraph\">No. The business owns the policy and is the beneficiary, so the company receives the benefit.<\/p><\/details><details class=\"wp-block-details chg-faq is-layout-flow wp-block-details-is-layout-flow\"><summary>Do employees have to agree?<\/summary><p class=\"wp-block-paragraph\">Under Florida law, the business needs written consent from the key person before buying the policy.<\/p><\/details><details class=\"wp-block-details chg-faq is-layout-flow wp-block-details-is-layout-flow\"><summary>Are the premiums tax deductible?<\/summary><p class=\"wp-block-paragraph\">Generally not when the business is the beneficiary, under <a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/26\/264\">26 U.S.C. \u00a7 264<\/a>.<\/p><\/details><\/article>\n<footer class=\"disclaimer\"><em>NR CPAs &amp; Business Advisors, LLC, 782 NW 42nd Avenue, Suite 534, Miami, FL 33126. Life insurance is offered by Nischay Rawal, a Florida-licensed life and health insurance agent (license G066337). This page is general information about life insurance, not tax, legal or investment advice, and not an offer of any specific policy. Coverage, premiums and benefits depend on the issuing insurer&#x27;s underwriting and the policy&#x27;s terms. Policy loans and withdrawals reduce cash value and the death benefit and may have tax consequences.<\/em><\/footer>\n\n\n<div class=\"wp-block-group alignwide has-global-padding is-layout-constrained wp-container-core-group-is-layout-583d630a wp-block-group-is-layout-constrained\" style=\"padding-top:3rem;padding-bottom:3rem;padding-left:1.5rem;padding-right:1.5rem\">\n<h2 class=\"wp-block-heading has-text-align-center\">What to cover when you talk with your team<\/h2>\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-f56f613f wp-block-columns-is-layout-flex\"><div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><p class=\"wp-block-paragraph\"><span class=\"chg-icon chg-icon--info\"><\/span><\/p><h3 class=\"wp-block-heading\">What the policy is<\/h3><p class=\"wp-block-paragraph\">Key person insurance is a policy the business owns on the life of an employee or owner whose work is important to the company. Explain it in plain terms, without jargon.<\/p><\/div><div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><p class=\"wp-block-paragraph\"><span class=\"chg-icon chg-icon--document\"><\/span><\/p><h3 class=\"wp-block-heading\">Who owns and benefits<\/h3><p class=\"wp-block-paragraph\">The business owns the policy and is the beneficiary, so the company receives the benefit. The insured person does not receive the death benefit.<\/p><\/div><div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><p class=\"wp-block-paragraph\"><span class=\"chg-icon chg-icon--users\"><\/span><\/p><h3 class=\"wp-block-heading\">Why the business buys it<\/h3><p class=\"wp-block-paragraph\">Many owners buy key person coverage to help the company manage the financial impact of losing a person whose skills, relationships or leadership matter to daily operations.<\/p><\/div><\/div>\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-f56f613f wp-block-columns-is-layout-flex\"><div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><p class=\"wp-block-paragraph\"><span class=\"chg-icon chg-icon--chat\"><\/span><\/p><h3 class=\"wp-block-heading\">Open, written consent<\/h3><p class=\"wp-block-paragraph\">Florida rules require written consent from the insured person before the policy is issued. Our team can walk you through the paperwork so the process is clear for everyone.<\/p><\/div><div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><p class=\"wp-block-paragraph\"><span class=\"chg-icon chg-icon--lightbulb\"><\/span><\/p><h3 class=\"wp-block-heading\">How the premiums are treated<\/h3><p class=\"wp-block-paragraph\">Tax treatment depends on the policy and the facts of each business. We review the cash flow and tax questions with you as part of a coverage review.<\/p><\/div><\/div>\n\n<\/div>\n\n\n\n<div class=\"wp-block-group has-base-color has-accent-background-color has-text-color has-background has-global-padding is-layout-constrained wp-container-core-group-is-layout-32197852 wp-block-group-is-layout-constrained\" style=\"background-color:var(--wp--preset--color--accent,#20242e);color:var(--wp--preset--color--base,#ffffff);border-radius:8px;padding-top:1.5rem;padding-bottom:1.5rem;padding-left:1.5rem;padding-right:1.5rem;border-left:6px solid var(--wp--preset--color--cta,currentColor);box-shadow:0 2px 10px rgba(0,0,0,0.18)\">\n<h3 class=\"wp-block-heading has-base-color has-text-color\">Be clear about the purpose before you buy<\/h3><p class=\"wp-block-paragraph\">Key person insurance is a business planning tool. Explain to staff that the policy is owned by the company and that the company, not the employee, receives the benefit. Insurance is offered by licensed agent Nischay Rawal, separately from the accounting practice.<\/p><div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\"><div class=\"wp-block-button chg-cta-call\"><a class=\"wp-block-button__link wp-element-button\" href=\"tel:+13058723096\">Call us today<\/a><\/div><div class=\"wp-block-button chg-cta-form\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/nrcpas.com\/contact\">Call us today<\/a><\/div><\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-group alignfull has-surface-background-color has-background has-global-padding is-layout-constrained wp-container-core-group-is-layout-583d630a wp-block-group-is-layout-constrained\" style=\"padding-top:3rem;padding-bottom:3rem;padding-left:1.5rem;padding-right:1.5rem\">\n<h2 class=\"wp-block-heading has-text-align-center\">Talking points for your team<\/h2>\n<div class=\"wp-block-columns alignwide is-layout-flex wp-container-core-columns-is-layout-f56f613f wp-block-columns-is-layout-flex\"><div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><div class=\"wp-block-group has-base-background-color has-background is-layout-flow wp-block-group-is-layout-flow\" style=\"border-radius:8px;box-shadow:0 4px 14px rgba(0,0,0,0.08);padding-top:1.5rem;padding-bottom:1.5rem;padding-left:1.5rem;padding-right:1.5rem\"><h3 class=\"wp-block-heading\">Start with the business reason<\/h3><p class=\"wp-block-paragraph\">Explain the role of the person insured and why the company wants to plan for that role, using the facts of your own operation.<\/p><\/div><\/div><div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><div class=\"wp-block-group has-base-background-color has-background is-layout-flow wp-block-group-is-layout-flow\" style=\"border-radius:8px;box-shadow:0 4px 14px rgba(0,0,0,0.08);padding-top:1.5rem;padding-bottom:1.5rem;padding-left:1.5rem;padding-right:1.5rem\"><h3 class=\"wp-block-heading\">Explain ownership and beneficiary<\/h3><p class=\"wp-block-paragraph\">Make clear who owns the policy, who pays the premiums and who receives the proceeds so that no one is left guessing.<\/p><\/div><\/div><div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><div class=\"wp-block-group has-base-background-color has-background is-layout-flow wp-block-group-is-layout-flow\" style=\"border-radius:8px;box-shadow:0 4px 14px rgba(0,0,0,0.08);padding-top:1.5rem;padding-bottom:1.5rem;padding-left:1.5rem;padding-right:1.5rem\"><h3 class=\"wp-block-heading\">Walk through the paperwork<\/h3><p class=\"wp-block-paragraph\">Review the application, the required health questions and the written consent step together, so each person knows what to expect.<\/p><\/div><\/div><div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><div class=\"wp-block-group has-base-background-color has-background is-layout-flow wp-block-group-is-layout-flow\" style=\"border-radius:8px;box-shadow:0 4px 14px rgba(0,0,0,0.08);padding-top:1.5rem;padding-bottom:1.5rem;padding-left:1.5rem;padding-right:1.5rem\"><h3 class=\"wp-block-heading\">Answer questions in writing<\/h3><p class=\"wp-block-paragraph\">Keep a simple written summary of the policy terms and the company&#x27;s reasons for buying it, so staff can refer back to it later.<\/p><\/div><\/div><\/div>\n\n<\/div>\n\n\n\n<div class=\"wp-block-group alignfull has-base-color has-primary-background-color has-text-color has-background has-global-padding is-layout-constrained wp-container-core-group-is-layout-4d466591 wp-block-group-is-layout-constrained\" style=\"background-color:var(--wp--preset--color--primary,#20242e);color:var(--wp--preset--color--base,#ffffff);padding-top:3rem;padding-bottom:3rem;padding-left:1.5rem;padding-right:1.5rem\">\n<h2 class=\"wp-block-heading has-text-align-center has-base-color has-text-color\">Ready to plan key person coverage for your Florida business?<\/h2>\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-0aa01211 wp-block-buttons-is-layout-flex\"><div class=\"wp-block-button chg-cta chg-cta-call\"><a class=\"wp-block-button__link wp-element-button\" href=\"tel:+13058723096\">Call us today<\/a><\/div><div class=\"wp-block-button chg-cta chg-cta-form\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/nrcpas.com\/contact\">Call us today<\/a><\/div><\/div>\n<\/div>\n\n<h2 class=\"wp-block-heading\">Related practice areas<\/h2><ul class=\"wp-block-list\"><li><a href=\"\/life-insurance-guides\/key-person-insurance\/florida\/\">Key Person Insurance in Florida<\/a><\/li><li><a href=\"\/life-insurance-guides\/key-person-insurance\/miami\/\">Key Person Insurance in Miami<\/a><\/li><\/ul>\n<!-- chg:section-siblings -->\n<nav aria-label=\"More in this section\">\n<h2>More in this section<\/h2>\n<ul><li><a href=\"\/life-insurance-guides\/key-person-insurance\/factors-that-change-key-person-insurance-cost\/\">What Factors Change the Cost of Key Person Insurance? Age, Health, Coverage Amount and Policy Type<\/a><\/li><li><a href=\"\/life-insurance-guides\/key-person-insurance\/first-90-days-after-key-person-death\/\">What Happens in the First 90 Days If a Key Person Dies Without Key Person Insurance?<\/a><\/li><li><a href=\"\/life-insurance-guides\/key-person-insurance\/florida-tax-business-life-insurance-death-benefit\/\">Does Florida Tax a Business Life Insurance Death Benefit?<\/a><\/li><li><a href=\"\/life-insurance-guides\/key-person-insurance\/how-does-key-man-insurance-work\/\">How does key man insurance work?<\/a><\/li><li><a href=\"\/life-insurance-guides\/key-person-insurance\/how-key-person-insurance-appears-on-balance-sheet\/\">How Does Key Person Insurance Appear on a Company&#x27;s Balance Sheet?<\/a><\/li><\/ul>\n<\/nav>\n<!-- \/chg:section-siblings -->","protected":false},"excerpt":{"rendered":"<p>Learn how to explain key person insurance to employees and co-owners. The business owns the policy and is the beneficiary. 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