{"id":3865,"date":"2026-10-21T04:42:29","date_gmt":"2026-10-21T04:42:29","guid":{"rendered":"https:\/\/nrcpas.com\/life-insurance-guides\/key-person-insurance\/key-person-insurance-coverage-review\/"},"modified":"2026-10-30T05:45:53","modified_gmt":"2026-10-30T05:45:53","slug":"key-person-insurance-coverage-review","status":"publish","type":"page","link":"https:\/\/nrcpas.com\/life-insurance-guides\/key-person-insurance\/key-person-insurance-coverage-review\/","title":{"rendered":"Key Person Insurance Coverage Review in Florida | NR CPAs"},"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-3863\" alt=\"Operations manager reviewing production schedules at a workstation in a manufacturing plant.\" src=\"https:\/\/nrcpas.com\/life-insurance-guides\/wp-content\/uploads\/2026\/10\/operations-manager-reviewing-production-schedules-at-a-works-photo.jpg\" width=\"1376\" height=\"768\" srcset=\"https:\/\/nrcpas.com\/life-insurance-guides\/wp-content\/uploads\/2026\/10\/operations-manager-reviewing-production-schedules-at-a-works-photo-150x150.jpg 150w, https:\/\/nrcpas.com\/life-insurance-guides\/wp-content\/uploads\/2026\/10\/operations-manager-reviewing-production-schedules-at-a-works-photo-300x167.jpg 300w, https:\/\/nrcpas.com\/life-insurance-guides\/wp-content\/uploads\/2026\/10\/operations-manager-reviewing-production-schedules-at-a-works-photo-768x429.jpg 768w, https:\/\/nrcpas.com\/life-insurance-guides\/wp-content\/uploads\/2026\/10\/operations-manager-reviewing-production-schedules-at-a-works-photo-1024x572.jpg 1024w, https:\/\/nrcpas.com\/life-insurance-guides\/wp-content\/uploads\/2026\/10\/operations-manager-reviewing-production-schedules-at-a-works-photo.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<\/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)\">Protect Your Business When a Key Person Is Lost<\/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)\">NR CPAs &amp; Business Advisors helps Florida business owners review key person life insurance, with a CPA&#x27;s view of tax and cash flow. Insurance is offered through Nischay Rawal, a licensed insurance agent, separately from our accounting practice.<\/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:+19542316613\">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 October 21, 2026<\/p>\n\n<article lang=\"en\">\n\n\n<p>A <a href=\"\/life-insurance-guides\/key-person-insurance\/\">key person insurance<\/a> coverage review checks whether the life insurance a business carries on an essential owner or employee matches the money the business would really lose. Key person insurance is life insurance the business owns on that individual, with the business named as beneficiary. This page covers what the policy pays for, how it differs from buy-sell and personal coverage, the tax questions, and how a review works.<\/p>\n<p>NR CPAs &amp; Business Advisors is a Miami CPA firm that serves businesses across Florida. Nischay Rawal is the licensed insurance agent responsible for this page.<\/p>\n<h2>What Key Person Insurance Is and Who It Is For<\/h2>\n<p>Key person insurance is a life policy a business owns on someone the company depends on. The business pays the premiums and receives the death benefit. 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<\/a> describes it as compensation to a business for financial losses caused by a key employee&#8217;s death or disability.<\/p>\n<p>Key individuals usually include:<\/p>\n<ul>\n<li>Majority or co-owners<\/li>\n<li>Senior executives<\/li>\n<li>Top revenue producers<\/li>\n<li>Employees whose skills or client relationships the business relies on<\/li>\n<\/ul>\n<p>Closely held companies in Miami, Fort Lauderdale, Tampa, Orlando and Jacksonville often lean on one or two people. When that is true, one unexpected loss can strain payroll, client work and lender terms.<\/p>\n<p>Florida sets a consent rule. 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>, a &#8220;key employee&#8221; or &#8220;key person&#8221; is an individual whose position or compensation is described in section 101(j)(2)(A)(ii) of the Internal Revenue Code. Being important to the business does not, by itself, meet that definition, and the business must also get that person&#8217;s written consent before the insurance is purchased. The business, or an affiliate or subsidiary, also may not retaliate or take adverse action against a key employee or key person who does not consent.<\/p>\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\/10\/two-professionals-sit-together-at-a-desk-reviewing-documents-photo.jpg\" alt=\"Two professionals sit together at a desk, reviewing documents and financial data in a bright office.\" style=\"border-radius:8px;width:100%;aspect-ratio:16\/9;object-fit:cover\"\/><\/figure>\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<h2>What the Policy Covers and How the Proceeds Are Used<\/h2>\n<p>The policy pays a death benefit to the business. The business decides how to use the money, within the policy terms and its own needs. Common uses include:<\/p>\n<ul>\n<li>Covering lost revenue while the company finds and trains a replacement<\/li>\n<li>Covering lost profit during a slow period<\/li>\n<li>Paying off business debt<\/li>\n<li>Meeting lender or creditor requirements<\/li>\n<\/ul>\n<p>Read the limits before you rely on the policy. Florida requires every policy to become incontestable after it has been in force during the lifetime of the insured for 2 years from its date of issue, with exceptions for nonpayment of premiums and, at the insurer&#8217;s option, certain disability and accidental-death terms. See <a href=\"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&amp;URL=0600-0699\/0627\/Sections\/0627.455.html\">Fla. Stat. \u00a7 627.455<\/a>. See <a href=\"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&amp;URL=0600-0699\/0627\/Sections\/0627.455.html\">Fla. Stat. \u00a7 627.455<\/a>. Incontestability does not end exclusions. Under <a href=\"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&amp;URL=0600-0699\/0627\/Sections\/0627.463.html\">Fla. Stat. \u00a7 627.463<\/a>, the clause only bars a challenge to the policy&#8217;s validity.<\/p>\n<p>Every insurance contract must also give at least 30 days to pay a premium after the first, under <a href=\"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&amp;URL=0600-0699\/0627\/Sections\/0627.453.html\">Fla. Stat. \u00a7 627.453<\/a>.<\/p>\n<p>Health questions are required, and issue may depend on insurability. A fully underwritten key person policy is not a policy with no health questions. Ask for the premium schedule, renewability and any age-based change before you commit.<\/p>\n<h2>Key Person Insurance, Buy-Sell Coverage and Personal Life Insurance Compared<\/h2>\n<p>Key person insurance protects the business from losing a person. Buy-sell and personal life insurance protect ownership and family, so they answer different questions.<\/p>\n<ul>\n<li><strong>Key person:<\/strong> the business owns the policy and receives the benefit to cover operating losses.<\/li>\n<li><strong>Buy-sell:<\/strong> funds the purchase of an owner&#8217;s interest when that owner dies, on terms set by the buy-sell agreement.<\/li>\n<li><strong>Personal life:<\/strong> the individual owns the policy, and the family usually receives the benefit.<\/li>\n<\/ul>\n<p>Ownership also changes the tax picture. Under <a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/26\/2042\">26 U.S.C. \u00a7 2042<\/a>, life insurance proceeds count in a decedent&#8217;s gross estate when they are receivable by the executor, or when they go to other beneficiaries and the decedent held incidents of ownership at death.<\/p>\n<p>The <a href=\"https:\/\/www.myfloridacfo.com\/docs-sf\/consumer-services-libraries\/consumerservices-documents\/understanding-coverage\/consumer-guides\/life-insurance-guide.pdf\">Florida life insurance guide<\/a> covers term, whole, universal and other policy types. Before choosing a structure, settle four questions: who owns the policy, who pays the premiums, who is the beneficiary, and what the proceeds must do.<\/p>\n<h2>Identifying Key Individuals and Sizing the Coverage<\/h2>\n<p>The right amount comes from the exposure the business can identify, not from a round number. Work through three steps:<\/p>\n<ol>\n<li>List every person whose death or disability would cut revenue, client retention or the ability to meet obligations.<\/li>\n<li>Estimate the exposure: lost profit during recruitment, replacement hiring and training, business debt, lender requirements and contract obligations tied to that person.<\/li>\n<li>Compare that total with the amount already insured.<\/li>\n<\/ol>\n<p>The <a href=\"https:\/\/content.naic.org\/sites\/default\/files\/publication-lig-lp-consumer-life.pdf\">NAIC Life Insurance Buyer&#8217;s Guide<\/a> covers how much coverage to buy and the questions to ask before buying.<\/p>\n<p>Age, health, coverage amount and policy type all shape cost. This page does not quote premiums. The review works out the cost for your facts.<\/p>\n<p>Three common mistakes are coverage set long ago and never updated, a policy on the wrong person, and a gap between the amount insured and the exposure. Write down the analysis so you can revisit it when ownership, revenue or lending changes.<\/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\">Have questions about what happened?<\/h3><p class=\"wp-block-paragraph\">Ask our team directly. Tell us what you are dealing with and we will explain how the process works from here.<\/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\">Talk to our team<\/a><\/div><div class=\"wp-block-button chg-cta-form\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/nrcpas.com\/contact\">Talk to our team<\/a><\/div><\/div>\n<\/div>\n<h2>Tax and Cash Flow: The CPA View<\/h2>\n<p>Premiums are a recurring cash cost, and their tax treatment depends on who owns the policy and who benefits from it.<\/p>\n<p>The Internal Revenue Code at <a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/26\/264\">26 U.S.C. \u00a7 264(a)(1)<\/a> says that premiums on any life insurance policy cannot be deducted when the taxpayer is, directly or indirectly, a beneficiary under that policy. When the business is the beneficiary, this rule is central to the premium question.<\/p>\n<p>Section <a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/26\/6039I\">26 U.S.C. \u00a7 6039I<\/a> requires an applicable policyholder that owns one or more employer-owned life insurance contracts issued after that section was enacted to file a return, at the time and in the manner Treasury regulations prescribe, for each year it owns those contracts. The policyholder must also keep the records needed to show whether that section and section 101(j) are met.<\/p>\n<p>Cash flow is the other half. Model each year&#8217;s premium against the budget, and check the cost if the policy stays in force for many years. The review identifies the tax questions that must be answered for your facts. The firm does not promise a particular tax result.<\/p>\n<p>Insurance is offered by the licensed insurance agent, separately from the accounting practice.<\/p>\n<h2>How a Coverage Review Works, Step by Step<\/h2>\n<p>A key person insurance coverage review runs in five steps, from the facts about your business to a written summary.<\/p>\n<ol>\n<li><strong>Coverage review.<\/strong> The first meeting is a coverage review, set up with our team.<\/li>\n<li><strong>Gather the basics.<\/strong> Collect ownership structure, key individuals, revenue by person where known, business debt, and any lender or contract requirements.<\/li>\n<li><strong>Review existing policies.<\/strong> Check the insurer, policy form, face amount, premium, beneficiary, owner and exclusions.<\/li>\n<li><strong>Identify gaps.<\/strong> Compare the coverage amount with the exposure, with premium and tax questions explained in plain words.<\/li>\n<li><strong>Get the terms in writing.<\/strong> If a policy is recommended, you receive the insurer, policy form, premium, payment period, limitations, exclusions and renewability before any application. Health questions are answered on the application.<\/li>\n<\/ol>\n<p>If a partner&#8217;s health has changed or a lender now wants a personal guarantee, you don&#8217;t have to sort out key person coverage alone. <a href=\"https:\/\/nrcpas.com\/contact\">Contact our team<\/a> to set up your coverage review.<\/p>\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\/10\/two-people-s-hands-reviewing-paperwork-at-a-table-with-coffe-photo.jpg\" alt=\"Hands writing on documents beside coffee cups and a tablet during a business meeting.\" style=\"border-radius:8px;width:100%;aspect-ratio:16\/9;object-fit:cover\"\/><\/figure>\n<h2>Frequently Asked Questions<\/h2><details class=\"wp-block-details chg-faq is-layout-flow wp-block-details-is-layout-flow\"><summary>What is a key insurance policy?<\/summary><p class=\"wp-block-paragraph\">It is life insurance a business owns on an essential owner or employee. The business is the beneficiary.<\/p><\/details><details class=\"wp-block-details chg-faq is-layout-flow wp-block-details-is-layout-flow\"><summary>Is key man insurance the same as key person insurance?<\/summary><p class=\"wp-block-paragraph\">Yes. Both names describe business-owned life coverage on a key individual.<\/p><\/details><details class=\"wp-block-details chg-faq is-layout-flow wp-block-details-is-layout-flow\"><summary>Are key person premiums tax deductible?<\/summary><p class=\"wp-block-paragraph\">Under 26 U.S.C. \u00a7 264(a)(1), no deduction is allowed for premiums on any life insurance policy if the taxpayer is directly or indirectly a beneficiary under the policy. The review checks the facts of each policy.<\/p><\/details><details class=\"wp-block-details chg-faq is-layout-flow wp-block-details-is-layout-flow\"><summary>Does the family receive the death benefit?<\/summary><p class=\"wp-block-paragraph\">Under a standard key person policy, the business receives it. Personal coverage for the family is a separate policy.<\/p><\/details><details class=\"wp-block-details chg-faq is-layout-flow wp-block-details-is-layout-flow\"><summary>What happens if the key person leaves the company?<\/summary><p class=\"wp-block-paragraph\">Ownership, premium payments and policy terms need review before the change takes effect.<\/p><\/details><details class=\"wp-block-details chg-faq is-layout-flow wp-block-details-is-layout-flow\"><summary>Who handles the coverage review?<\/summary><p class=\"wp-block-paragraph\">Nischay Rawal, the licensed insurance agent responsible for this page, handles it with support from our team. Insurance is offered separately from the accounting practice.<\/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\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\">Want to know where you stand?<\/h3><p class=\"wp-block-paragraph\">Tell us about your situation and our team will walk you through the options available to you.<\/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\">Request 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\">Request a coverage review<\/a><\/div><\/div>\n<\/div>\n<h2 class=\"wp-block-heading has-text-align-center\">How We Approach Key Person Coverage<\/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--document\"><\/span><\/p><h3 class=\"wp-block-heading\">Policy Structure<\/h3><p class=\"wp-block-paragraph\">We explain how a key person policy is owned, who is named as beneficiary, and how premiums and coverage amounts are set for the business.<\/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\">CPA Perspective on Cash Flow<\/h3><p class=\"wp-block-paragraph\">Our CPA view considers how premium payments affect the business budget and how the coverage fits the company&#x27;s financial statements.<\/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--chat\"><\/span><\/p><h3 class=\"wp-block-heading\">Plain-Language Explanations<\/h3><p class=\"wp-block-paragraph\">We explain insurance terms in plain words so you can make informed decisions about your business and your coverage.<\/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\">Important Underwriting Information<\/h3><p class=\"wp-block-paragraph\">Health questions are required, and whether a policy is issued depends on insurability. Coverage terms, exclusions and premiums are set by the insurer and vary by policy.<\/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:+19542316613\">Call us today to discuss your situation<\/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 to discuss your situation<\/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\">Common Questions About Key Person Coverage<\/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\"><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\">What is key person insurance?<\/h3><p class=\"wp-block-paragraph\">It is life insurance a business owns on an essential owner or employee, with the business named as beneficiary.<\/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\">Who should be covered?<\/h3><p class=\"wp-block-paragraph\">Coverage is often considered for owners and employees whose departure would significantly affect the company. We help you think through who that is in your business.<\/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\">How do we start?<\/h3><p class=\"wp-block-paragraph\">Call our office to schedule a coverage review. We will review your business, your key people and your goals before discussing any policy options.<\/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 protect your business and the people who depend on it?<\/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:+19542316613\">Call NR CPAs &amp; Business Advisors 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 NR CPAs &amp; Business Advisors today<\/a><\/div><\/div>\n<\/div>\n\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\/key-person-insurance-death-benefit-company-or-family\/\">Does a Key Person Death Benefit Go to the Company or the Family?<\/a><\/li><li><a href=\"\/life-insurance-guides\/key-person-insurance\/key-person-insurance-death-benefit-taxable\/\">Is Key Person Life Insurance Death Benefit Taxable to the Business?<\/a><\/li><li><a href=\"\/life-insurance-guides\/key-person-insurance\/key-person-insurance-death-claim-steps\/\">How Long Does a Key Person Death Claim Take to Pay? The Steps Between Death and Payout<\/a><\/li><li><a href=\"\/life-insurance-guides\/key-person-insurance\/key-person-insurance-dental-medical-practice\/\">Key Person Insurance for Dental and Medical Practices: Coverage Review with NR CPAs<\/a><\/li><li><a href=\"\/life-insurance-guides\/key-person-insurance\/key-person-insurance-documents-before-issue\/\">What Should a Business Owner Document Before a Key Person Insurance Policy Is Issued?<\/a><\/li><\/ul>\n<\/nav>\n<!-- \/chg:section-siblings -->","protected":false},"excerpt":{"rendered":"<p>Key person insurance coverage review for Florida businesses: what the policy covers, the written consent rule, tax questions and how the review works.<\/p>\n","protected":false},"author":2,"featured_media":0,"parent":16,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"chg_review":"","chg_sendback":"","chg_canonical":"","chg_lang":"","chg_hreflang":"[{\"hreflang\": \"en\", \"href\": \"https:\/\/nrcpas.com\/life-insurance-guides\/key-person-insurance\/key-person-insurance-coverage-review\/\"}, {\"hreflang\": \"es\", \"href\": \"https:\/\/nrcpas.com\/life-insurance-guides\/es\/seguro-persona-clave\/revision-cobertura-seguro-persona-clave\/\"}, {\"hreflang\": \"x-default\", \"href\": \"https:\/\/nrcpas.com\/life-insurance-guides\/key-person-insurance\/key-person-insurance-coverage-review\/\"}]","chg_jsonld":"[{\"@context\": \"https:\/\/schema.org\", \"speakable\": {\"@type\": \"SpeakableSpecification\", \"cssSelector\": [\"article > p:first-of-type\", \".wp-block-details p\", \"article > h1\"]}, \"author\": {\"@type\": \"Person\", \"name\": \"Nischay Rawal\", \"url\": \"https:\/\/nrcpas.com\/author\", \"jobTitle\": \"Managing Partner, CPA, EA and Licensed Life Insurance Agent\", \"sameAs\": [\"https:\/\/licenseesearch.fldfs.com\/Licensee\/2306161\", \"https:\/\/www.myfloridalicense.com\/portalsearches\/VerifyLicensee\/LicenseDetail?ID=D6E76E58125054CFA98C8D92AF9DBC44\", \"https:\/\/www.taxbuzz.com\/florida\/miami\/nr-cpas-and-business-advisors-llc\", \"https:\/\/x.com\/nrawal786\", \"https:\/\/www.linkedin.com\/in\/nischay-rawal-cpa-ea-22741924a\/?isSelfProfile=false\"]}, \"publisher\": {\"@type\": \"Organization\", \"@id\": \"https:\/\/nrcpas.com\/life-insurance-guides\/#organization\", \"name\": \"NR CPAs & Business Advisors\", \"url\": \"https:\/\/nrcpas.com\/\"}, \"reviewedBy\": {\"@type\": \"Person\", \"name\": \"Erika Trinidad\", \"jobTitle\": \"Accountant\"}, \"inLanguage\": \"en\", \"mainEntity\": [{\"@type\": \"Question\", \"name\": \"What is a key insurance policy?\", \"acceptedAnswer\": {\"@type\": \"Answer\", \"text\": \"It is life insurance a business owns on an essential owner or employee. The business is the beneficiary.\"}}, {\"@type\": \"Question\", \"name\": \"Is key man insurance the same as key person insurance?\", \"acceptedAnswer\": {\"@type\": \"Answer\", \"text\": \"Yes. Both names describe business-owned life coverage on a key individual.\"}}, {\"@type\": \"Question\", \"name\": \"Are key person premiums tax deductible?\", \"acceptedAnswer\": {\"@type\": \"Answer\", \"text\": \"Under 26 U.S.C. \u00a7 264(a)(1), no deduction is allowed for premiums on any life insurance policy if the taxpayer is directly or indirectly a beneficiary under the policy. The review checks the facts of each policy.\"}}, {\"@type\": \"Question\", \"name\": \"Does the family receive the death benefit?\", \"acceptedAnswer\": {\"@type\": \"Answer\", \"text\": \"Under a standard key person policy, the business receives it. 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