{"id":4303,"date":"2026-10-23T00:42:26","date_gmt":"2026-10-23T00:42:26","guid":{"rendered":"https:\/\/nrcpas.com\/life-insurance-guides\/key-person-insurance\/term-key-person-life-insurance\/"},"modified":"2026-10-29T23:21:27","modified_gmt":"2026-10-29T23:21:27","slug":"term-key-person-life-insurance","status":"publish","type":"page","link":"https:\/\/nrcpas.com\/life-insurance-guides\/key-person-insurance\/term-key-person-life-insurance\/","title":{"rendered":"Miami Term Key Person Life Insurance: When It Fits"},"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-60 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-4300\" alt=\"A senior operations manager reviews production schedules at a workstation in a busy manufacturing facility, with colleagues working in the background.\" src=\"https:\/\/nrcpas.com\/life-insurance-guides\/wp-content\/uploads\/2026\/10\/a-senior-operations-manager-reviews-production-schedules-at-photo-13.jpg\" width=\"1376\" height=\"768\" srcset=\"https:\/\/nrcpas.com\/life-insurance-guides\/wp-content\/uploads\/2026\/10\/a-senior-operations-manager-reviews-production-schedules-at-photo-13-150x150.jpg 150w, https:\/\/nrcpas.com\/life-insurance-guides\/wp-content\/uploads\/2026\/10\/a-senior-operations-manager-reviews-production-schedules-at-photo-13-300x167.jpg 300w, https:\/\/nrcpas.com\/life-insurance-guides\/wp-content\/uploads\/2026\/10\/a-senior-operations-manager-reviews-production-schedules-at-photo-13-768x429.jpg 768w, https:\/\/nrcpas.com\/life-insurance-guides\/wp-content\/uploads\/2026\/10\/a-senior-operations-manager-reviews-production-schedules-at-photo-13-1024x572.jpg 1024w, https:\/\/nrcpas.com\/life-insurance-guides\/wp-content\/uploads\/2026\/10\/a-senior-operations-manager-reviews-production-schedules-at-photo-13.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)\">Term Key Person Life Insurance | Miami<\/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)\">Plan for the Business Partner Your Company Depends On<\/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)\">Term key person life insurance can help a Miami business cover the financial impact if a key owner or employee dies. NR CPAs &amp; Business Advisors reviews how it fits your company&#x27;s cash flow and tax picture.<\/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 for 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 for 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 22, 2026<\/p>\n\n<article lang=\"en\">\n\n\n<p>Term key person life insurance is a term life insurance policy that a business owns on one person whose loss would hurt the company. If that person dies during the term, the business receives the death benefit. It fits when a known business risk has an end date, such as a loan repayment period or a leadership transition.<\/p>\n<h2>What term key person life insurance is and who it is for<\/h2>\n<p>Term key person life insurance pays the business, not the family, when a named key person dies during a fixed term. 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 key person life insurance as compensation for a business&#8217;s financial losses caused by a key employee&#8217;s death or disability.<\/p>\n<p>A key person is someone the business relies on. That might be an owner, a top salesperson, a technical lead, or someone who personally guarantees a business loan. Because the money is meant to offset business losses, the business is usually the policy owner and beneficiary.<\/p>\n<p>This coverage often fits three situations:<\/p>\n<ul>\n<li>A bank loan with a fixed repayment period that depends on one owner&#8217;s continued role.<\/li>\n<li>A planned leadership transition that will take several years.<\/li>\n<li>A contract or client relationship that depends on one person&#8217;s skills.<\/li>\n<\/ul>\n<p>Term key person coverage is a term life insurance policy. It is not an investment, a savings plan or a retirement plan.<\/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-collaborate-over-a-design-project-in-a-bri-photo.jpg\" alt=\"Two professionals collaborate over a design project in a bright, modern studio.\" 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 what is included<\/h2>\n<p>Each policy has a few core parts. You should understand them before you apply.<\/p>\n<ul>\n<li><strong>Death benefit:<\/strong> the amount the insurer pays if the insured dies during the term.<\/li>\n<li><strong>Term length:<\/strong> the number of years coverage stays in force.<\/li>\n<li><strong>Insured person, policy owner and beneficiary:<\/strong> these can be different parties. 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 policy on another person&#8217;s life may pay benefits only to the insured, the insured&#8217;s personal representatives, or a person who had an insurable interest in the insured when the contract was made.<\/li>\n<li><strong>Premium schedule:<\/strong> how often premiums are due and how long they are payable.<\/li>\n<\/ul>\n<p>The business decides how to use the proceeds. Some businesses use them to cover lost revenue, recruit a replacement, or repay business debt. No policy promises any particular result.<\/p>\n<p>Coverage ends when the term ends. Some forms allow renewal or conversion. Premiums can change with age at renewal, depending on the form. Ask the insurer to confirm these terms in writing.<\/p>\n<p>Florida law sets some baseline rules. Every insurance contract must allow a grace period of not less than 30 days for paying any 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>. Every life insurance contract must provide that the policy becomes incontestable after it has been in force during the insured&#8217;s lifetime for 2 years from its date of issue, except for nonpayment of premiums and, at the insurer&#8217;s option, provisions on disability benefits and provisions granting additional insurance specifically against death by accident or accidental means, under <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 stop an insurer from relying on policy exclusions or restrictions, 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>.<\/p>\n<h2>Term versus whole life for key person coverage<\/h2>\n<p>Term coverage protects a defined window. Whole life insurance is permanent. The right choice depends on how long the business risk lasts.<\/p>\n\n<figure class=\"wp-block-table is-style-stripes\"><table>\n<thead>\n<tr>\n<th>Feature<\/th>\n<th>Term key person<\/th>\n<th>Whole life key person<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Coverage length<\/td>\n<td>Fixed term<\/td>\n<td>Permanent, as the policy form provides<\/td>\n<\/tr>\n<tr>\n<td>Cash value<\/td>\n<td>Generally none<\/td>\n<td>Builds as the policy form describes<\/td>\n<\/tr>\n<tr>\n<td>Best fit<\/td>\n<td>A loan or transition with an end date<\/td>\n<td>A need that continues past a set period<\/td>\n<\/tr>\n<tr>\n<td>Renewal<\/td>\n<td>Depends on the form; premiums may change with age<\/td>\n<td>Depends on the form<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/figure>\n\n<p>Whole life illustrations need care. Cash values and any dividends are not guaranteed to any particular amount. If an illustration shows guaranteed and non-guaranteed values, read them separately.<\/p>\n<p>Match the term length to the repayment schedule or transition timeline. If the need runs longer or has no end date, a permanent policy may be the better comparison. 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 term versus permanent life insurance and the questions to ask before buying.<\/p>\n<h2>How the process works from first call to issued policy<\/h2>\n<p>You start with a coverage review. The application, underwriting and policy delivery follow.<\/p>\n<ol>\n<li><strong>Coverage review.<\/strong> Call the firm and describe the business, the key person&#8217;s role, and the exposure period. Cover why coverage is needed, the amount tied to a documented exposure, who owns the policy, and which term fits.<\/li>\n<li><strong>Written consent.<\/strong> 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 business may insure an owner, officer or key person when that person consents in writing before the policy is bought. The business may not retaliate against a key employee or key person who refuses to consent to the insurance.<\/li>\n<li><strong>Application and health questions.<\/strong> Health questions are required, and issue may depend on insurability.<\/li>\n<li><strong>Underwriting and delivery.<\/strong> The insurer reviews the file and then issues the policy. Ask the insurer for the return period for a new policy in writing. The <a href=\"https:\/\/www.myfloridacfo.com\/docs-sf\/consumer-services-libraries\/consumerservices-documents\/understanding-coverage\/consumer-guides\/life-insurance-guide.pdf\">Florida Department of Financial Services guide<\/a> covers that topic. Timing varies by insurer and file, so ask for the insurer&#8217;s estimate in writing.<\/li>\n<\/ol>\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>Limits, premium obligations and questions to ask before you buy<\/h2>\n<p>The business pays the premiums for the whole term. If a premium is late, the policy stays in force during the grace period. The insurer may charge interest, up to 8 percent per year, 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>. Missed payments after that can end coverage, so budget for every year of the term.<\/p>\n<p>Tax treatment matters. Under <a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/26\/264\">26 U.S.C. \u00a7 264<\/a>, no deduction is allowed for premiums on a life policy when the taxpayer is directly or indirectly a beneficiary. For a business that is the beneficiary, premiums are generally not deductible. Under <a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/26\/101\">26 U.S.C. \u00a7 101<\/a>, amounts paid because of the insured&#8217;s death are generally excluded from gross income. For an employer-owned life insurance contract, however, section 101(j) sets a general rule that the amount an applicable policyholder may exclude cannot exceed the sum of the premiums and other amounts paid by the policyholder for the contract, unless one of the statute&#8217;s exceptions applies. Those exceptions include contracts that meet the notice and consent requirements where the insured fits certain categories, and proceeds paid to the insured&#8217;s family member, a designated beneficiary, or the insured&#8217;s estate.<\/p>\n<p>Employer-owned policies can carry extra duties. Under <a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/26\/6039I\">26 U.S.C. \u00a7 6039I<\/a>, an applicable policyholder owning employer-owned life insurance contracts issued after the date of enactment of this section (August 17, 2006) must file an annual return and keep records for these contracts.<\/p>\n<p>How these rules apply depends on the facts, the policy owner and the business entity. Review them with the firm before you buy.<\/p>\n<p>Bring these questions to your coverage review:<\/p>\n<ul>\n<li>How long is the loan or transition timeline?<\/li>\n<li>What happens at term expiry, and does the form allow renewal or conversion?<\/li>\n<li>Who owns the policy and who pays the premiums?<\/li>\n<li>Has written consent been obtained from the key person?<\/li>\n<\/ul>\n<h2>Why NR CPAs &amp; Business Advisors<\/h2>\n<p>NR CPAs &amp; Business Advisors is a Miami CPA firm. It helps families, professionals and business owners across the United States choose and buy life insurance. That includes key person and buy-sell coverage, with a CPA&#8217;s view of tax and cash flow.<\/p>\n<p>Our team looks at how the insurance decision fits the business&#8217;s cash flow and tax picture. That view informs the decision. The policy terms still come from the insurer&#8217;s policy form.<\/p>\n<p>Nischay Rawal is the responsible agent for this page. Insurance is offered through Nischay Rawal, a licensed insurance agent, separately from the firm&#8217;s accounting practice. Under <a href=\"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&amp;URL=0600-0699\/0626\/Sections\/0626.112.html\">Fla. Stat. \u00a7 626.112<\/a>, an insurance agent must be currently licensed and appointed. <a href=\"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&amp;URL=0600-0699\/0626\/Sections\/0626.112.html\">Fla. Stat. \u00a7 626.112<\/a> reads: &#8220;(1)(a) No person may be, act as, or advertise or hold himself or herself out to be an insurance agent, insurance adjuster, or customer representative unless he or she is currently licensed by the department and appointed by an appropriate appointing entity or person.&#8221;<\/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\/four-people-gather-around-architectural-blueprints-spread-ac-photo.jpg\" alt=\"Four people gather around architectural blueprints spread across a table in a bright, modern office.\" style=\"border-radius:8px;width:100%;aspect-ratio:16\/9;object-fit:cover\"\/><\/figure>\n<h2>Frequently asked questions and your next step<\/h2><details class=\"wp-block-details chg-faq is-layout-flow wp-block-details-is-layout-flow\"><summary>Does term key person life insurance build cash value?<\/summary><p class=\"wp-block-paragraph\">Generally, no. Term key person coverage is a term life insurance policy, and it generally does not build cash value.<\/p><\/details><details class=\"wp-block-details chg-faq is-layout-flow wp-block-details-is-layout-flow\"><summary>What happens when the term ends?<\/summary><p class=\"wp-block-paragraph\">Coverage ends unless the policy form allows renewal or conversion.<\/p><\/details><details class=\"wp-block-details chg-faq is-layout-flow wp-block-details-is-layout-flow\"><summary>Who should own the policy?<\/summary><p class=\"wp-block-paragraph\">The business often owns the policy and is the beneficiary. Tax and entity details depend on the facts.<\/p><\/details><details class=\"wp-block-details chg-faq is-layout-flow wp-block-details-is-layout-flow\"><summary>Do I need health questions?<\/summary><p class=\"wp-block-paragraph\">Yes. Health questions are required, and issue may depend on insurability.<\/p><p>If a bank loan or your company&#8217;s revenue depends on one owner&#8217;s continued role, call us today to request a coverage review with Nischay Rawal. You can also reach out through <a href=\"https:\/\/nrcpas.com\/contact\">our contact page<\/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\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\">What to Review Before Choosing Key Person Coverage<\/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\"><p class=\"wp-block-paragraph\"><span class=\"chg-icon chg-icon--lightbulb\"><\/span><\/p><h3 class=\"wp-block-heading\">Who the key person is<\/h3><p class=\"wp-block-paragraph\">Coverage is usually considered for an owner, executive or employee whose skills, relationships or decisions are important to the company&#x27;s income.<\/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 pays for the policy<\/h3><p class=\"wp-block-paragraph\">Ownership, beneficiary and premium payment choices affect both the tax treatment and how the proceeds can be used.<\/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--clock\"><\/span><\/p><h3 class=\"wp-block-heading\">How long the coverage lasts<\/h3><p class=\"wp-block-paragraph\">Term coverage runs for a set period. Ask how renewal, conversion and age-based premium changes work before you buy.<\/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--shield\"><\/span><\/p><h3 class=\"wp-block-heading\">What the policy does not do<\/h3><p class=\"wp-block-paragraph\">Term key person coverage is a term life insurance policy. It generally does not build cash value.<\/p><\/div><\/div>\n\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 Business Owners Ask<\/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\">Is term key person coverage the right type?<\/h3><p class=\"wp-block-paragraph\">It is often compared with whole life insurance. A coverage review looks at the company&#x27;s needs, budget and how long the coverage is needed.<\/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 does it connect to buy-sell planning?<\/h3><p class=\"wp-block-paragraph\">Key person coverage and buy-sell agreement insurance solve different problems. We review how each one fits within the owners&#x27; overall plan.<\/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\">What about owners living outside the U.S.?<\/h3><p class=\"wp-block-paragraph\">Business owners with NRI status have added questions about residency, taxes and policy ownership. We help you map those questions before you decide.<\/p><\/div><\/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\">Know the Limits Before You Buy<\/h3><p class=\"wp-block-paragraph\">Term <a href=\"\/life-insurance-guides\/key-person-insurance\/\">key person insurance<\/a> pays only if the insured dies during the term and the policy is in force. Health questions are required, and issue may depend on insurability. Review the policy form, exclusions and renewal terms with your agent first.<\/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\">Ask us about 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\">Ask us about your situation<\/a><\/div><\/div>\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\">Protect the people and the business you have built. Contact NR CPAs &amp; Business Advisors to schedule a coverage review.<\/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 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<!-- 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\/transfer-key-person-policy-ownership\/\">Transferring Ownership of a Key Person Policy to an Employee or Partner: Tax and Policy Steps Before You Sign<\/a><\/li><li><a href=\"\/life-insurance-guides\/key-person-insurance\/transfer-key-person-policy-to-departing-owner\/\">Moving a Key Person Policy to a Departing Owner: The Transfer-for-Value Rule Explained<\/a><\/li><li><a href=\"\/life-insurance-guides\/key-person-insurance\/underwriting-questions-key-person-insurance\/\">What Health Questions Do Underwriters Ask for Key Person Life Insurance?<\/a><\/li><li><a href=\"\/life-insurance-guides\/key-person-insurance\/what-are-exceptions-to-transfer-for-value-rule-for-life-insurance-policies\/\">What are the exceptions to the transfer-for-value rule for life insurance policies?<\/a><\/li><li><a href=\"\/life-insurance-guides\/key-person-insurance\/what-are-the-differences-between-key-person-insurance-and-life-insurance\/\">What are the differences between key person insurance and life insurance?<\/a><\/li><\/ul>\n<\/nav>\n<!-- \/chg:section-siblings -->","protected":false},"excerpt":{"rendered":"<p>Term key person life insurance covers a fixed business risk. Learn when a term policy fits, how it compares to whole life, and what to confirm before you buy.<\/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\/term-key-person-life-insurance\/\"}, {\"hreflang\": \"es\", \"href\": \"https:\/\/nrcpas.com\/life-insurance-guides\/es\/seguro-persona-clave\/seguro-vida-temporal-persona-clave\/\"}, {\"hreflang\": \"x-default\", \"href\": \"https:\/\/nrcpas.com\/life-insurance-guides\/key-person-insurance\/term-key-person-life-insurance\/\"}]","chg_jsonld":"[{\"name\": \"Term Key Person Life Insurance Coverage Review\", \"@type\": [\"Service\", \"FAQPage\"], \"about\": [{\"name\": \"Term key person life insurance\", \"@type\": \"Thing\"}, {\"name\": \"Key person insurance\", \"@type\": \"Thing\"}, {\"name\": \"Term life insurance\", \"@type\": \"Thing\"}, {\"name\": \"Whole life insurance\", \"@type\": \"Thing\"}], \"@context\": \"https:\/\/schema.org\", \"audience\": {\"@type\": \"BusinessAudience\", \"audienceType\": \"Owners, partners and managers of closely held businesses who depend on one or more key people\"}, \"provider\": {\"@type\": \"Organization\", \"@id\": \"https:\/\/nrcpas.com\/life-insurance-guides\/#organization\", \"name\": \"NR CPAs & Business Advisors\", \"url\": \"https:\/\/nrcpas.com\/\"}, \"speakable\": {\"@type\": \"SpeakableSpecification\", \"cssSelector\": [\"article > p:first-of-type\", \".wp-block-details p\", \"article > h1\"]}, \"areaServed\": [{\"name\": \"Florida\", \"@type\": \"State\"}, {\"name\": \"United States\", \"@type\": \"Country\"}], \"description\": \"Guide page explaining term key person life insurance, a business-owned, fixed-term death benefit that pays the business if a named key person dies during the policy term. 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It describes how to request a coverage review with a licensed insurance agent.\", \"serviceType\": \"Term key person life insurance\", \"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\": \"Does term key person life insurance build cash value?\", \"acceptedAnswer\": {\"@type\": \"Answer\", \"text\": \"Generally, no. Term key person coverage is a term life insurance policy, and it generally does not build cash value.\"}}, {\"@type\": \"Question\", \"name\": \"What happens when the term ends?\", \"acceptedAnswer\": {\"@type\": \"Answer\", \"text\": \"Coverage ends unless the policy form allows renewal or conversion.\"}}, {\"@type\": \"Question\", \"name\": \"Who should own the policy?\", \"acceptedAnswer\": {\"@type\": \"Answer\", \"text\": \"The business often owns the policy and is the beneficiary. Tax and entity details depend on the facts.\"}}, {\"@type\": \"Question\", \"name\": \"Do I need health questions?\", \"acceptedAnswer\": {\"@type\": \"Answer\", \"text\": \"Yes. Health questions are required, and issue may depend on insurability.If a bank loan or your company's revenue depends on one owner's continued role, call us today to request a coverage review with Nischay Rawal. You can also reach out through our contact page.\"}}]}, {\"@context\": \"https:\/\/schema.org\", \"@type\": \"BreadcrumbList\", \"itemListElement\": [{\"@type\": \"ListItem\", \"position\": 1, \"name\": \"Home\", \"item\": \"https:\/\/nrcpas.com\/life-insurance-guides\/\"}, {\"@type\": \"ListItem\", \"position\": 2, \"name\": \"Key Person Insurance\", \"item\": \"https:\/\/nrcpas.com\/life-insurance-guides\/key-person-insurance\/\"}, {\"@type\": \"ListItem\", \"position\": 3, \"name\": \"Miami Term Key Person Life Insurance: When It Fits\", \"item\": \"https:\/\/nrcpas.com\/life-insurance-guides\/key-person-insurance\/term-key-person-life-insurance\/\"}]}]","chg_meta_description":"Term key person life insurance covers a fixed business risk. 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