{"id":4725,"date":"2026-10-24T08:30:43","date_gmt":"2026-10-24T08:30:43","guid":{"rendered":"https:\/\/nrcpas.com\/life-insurance-guides\/key-person-insurance\/key-person-insurance-llc\/"},"modified":"2026-10-30T04:39:33","modified_gmt":"2026-10-30T04:39:33","slug":"key-person-insurance-llc","status":"publish","type":"page","link":"https:\/\/nrcpas.com\/life-insurance-guides\/key-person-insurance\/key-person-insurance-llc\/","title":{"rendered":"Key Person Insurance for LLC in Florida | NR CPAs"},"content":{"rendered":"\n
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Protect your LLC if a key person is lost<\/h1>\n

Key person insurance helps your business plan for the financial impact of losing an owner or essential employee. NR CPAs & Business Advisors, a Miami CPA firm, reviews the figures with a CPA's view of tax and cash flow.<\/p>\n

Call us today to schedule your coverage review<\/a><\/div>
Call us today to schedule your coverage review<\/a><\/div><\/div>\n<\/div>\n\n\n

By Nischay Rawal \u00b7 Published October 24, 2026<\/p>\n\n

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Key person insurance for LLC owners works like this: the company applies for the policy, owns it, pays the premiums and is named the beneficiary. Under Florida’s insurable-interest rule for a business entity, a key person is an individual whose position or compensation is described in s. 101(j)(2)(A)(ii) of the Internal Revenue Code, and a business may insure its owners, directors, officers, partners, and managers, or its key employees or key persons, if written consent is obtained from them before the insurance is purchased (Fla. Stat. \u00a7 627.404<\/a>). This page explains who does what, what the death benefit can and cannot do, and where tax and consent rules come in.<\/p>\n

What key person insurance is and who it fits<\/h2>\n

Key person insurance is life insurance a business buys on an owner or employee whose work or relationships the company depends on. If that person dies, the death benefit goes to the business, which can use it to bridge the gap.<\/p>\n

LLCs often look at this coverage when client relationships, licensing or banking ties rest heavily on one person. It can fit single-member and multi-member LLCs alike.<\/p>\n

Key person coverage is not personal life insurance. Personal coverage pays a family. Key person coverage pays the company. Buy-sell agreement insurance is a different tool, built to fund an ownership transfer. Our buy-sell agreement insurance page explains that difference.<\/p>\n

Every policy has four roles:<\/p>\n