{"id":4851,"date":"2026-10-25T04:08:09","date_gmt":"2026-10-25T04:08:09","guid":{"rendered":"https:\/\/nrcpas.com\/life-insurance-guides\/key-person-insurance\/key-person-insurance-key-person-insurance-for-company-with-investors\/"},"modified":"2026-10-29T23:23:23","modified_gmt":"2026-10-29T23:23:23","slug":"key-person-insurance-key-person-insurance-for-company-with-investors","status":"publish","type":"page","link":"https:\/\/nrcpas.com\/life-insurance-guides\/key-person-insurance\/key-person-insurance-key-person-insurance-for-company-with-investors\/","title":{"rendered":"Key Person Insurance for Investors 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-4848\" alt=\"A senior operations manager reviews production schedules and equipment logs at a workstation in a busy manufacturing facility.\" src=\"https:\/\/nrcpas.com\/life-insurance-guides\/wp-content\/uploads\/2026\/10\/a-senior-operations-manager-reviews-production-schedules-and-photo-12.jpg\" width=\"1376\" height=\"768\" srcset=\"https:\/\/nrcpas.com\/life-insurance-guides\/wp-content\/uploads\/2026\/10\/a-senior-operations-manager-reviews-production-schedules-and-photo-12-150x150.jpg 150w, https:\/\/nrcpas.com\/life-insurance-guides\/wp-content\/uploads\/2026\/10\/a-senior-operations-manager-reviews-production-schedules-and-photo-12-300x167.jpg 300w, https:\/\/nrcpas.com\/life-insurance-guides\/wp-content\/uploads\/2026\/10\/a-senior-operations-manager-reviews-production-schedules-and-photo-12-768x429.jpg 768w, https:\/\/nrcpas.com\/life-insurance-guides\/wp-content\/uploads\/2026\/10\/a-senior-operations-manager-reviews-production-schedules-and-photo-12-1024x572.jpg 1024w, https:\/\/nrcpas.com\/life-insurance-guides\/wp-content\/uploads\/2026\/10\/a-senior-operations-manager-reviews-production-schedules-and-photo-12.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 the Business Your Family and Investors Depend 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)\">NR CPAs &amp; Business Advisors helps Florida investors and business owners in Miami, Fort Lauderdale, West Palm Beach, Orlando, Tampa and Jacksonville weigh key person insurance, with a CPA&#x27;s view of tax and cash flow. Protect your loved ones by planning for the loss of a key person now.<\/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 25, 2026<\/p>\n\n<article lang=\"en\">\n\n\n<p>If you are looking into key person insurance for investors, start with one fact: the policy pays the company, not the family. That payment can give a business a funded way to handle the loss of a founder or leader. This page explains how the policy works and what a CPA-led coverage review looks at.<\/p>\n<h2>What key person insurance is and who it is for<\/h2>\n<p>Key person insurance is life insurance that a business buys on a person whose death would cause it financial loss. 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 this coverage as a way to compensate a business for losses caused by the death or disability of a key employee.<\/p>\n<p>Three parties are usually involved:<\/p>\n<ul>\n<li><strong>The company<\/strong>, which owns the policy and is the beneficiary.<\/li>\n<li><strong>The insured<\/strong>, the founder or leader whose life is covered.<\/li>\n<li><strong>The insurer<\/strong>, which issues the policy.<\/li>\n<\/ul>\n<p>This coverage often fits companies with venture or private equity backers, bank lenders, or co-owners who rely on one person&#8217;s skills, relationships or licenses.<\/p>\n<p>Insurance is offered by Nischay Rawal, acting as a licensed insurance agent, separately from the accounting practice. Florida law says no one may act as an insurance agent unless licensed and appointed, 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>. 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>, no person may be, act as, or advertise or hold himself or herself out to be an insurance agent unless he or she is currently licensed by the department and appointed by an appropriate appointing entity or person. The insurance described on this page comes from a licensed insurance agent and is kept separate from the accounting work of NR CPAs &amp; Business Advisors, a CPA firm based in Miami.<\/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\/a-young-entrepreneur-presents-startup-strategies-beside-a-fl-photo.jpg\" alt=\"A young entrepreneur presents startup strategies beside a flip chart in an indoor meeting room.\" 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 a key person policy covers<\/h2>\n<p>A key person policy pays a death benefit to the business, and the business decides how to use it. The money goes to the company, not to the insured&#8217;s family. A company might use the payment to:<\/p>\n<ul>\n<li>Replace lost revenue during a transition<\/li>\n<li>Pay for the search and training of a successor<\/li>\n<li>Meet debt payments or loan terms<\/li>\n<li>Support working capital while the company adjusts<\/li>\n<\/ul>\n<p>The face amount is the death benefit the policy pays. A common mistake is picking a round number instead of tying the amount to documented figures. Those figures include revenue linked to that person, outstanding debt and the expected cost of finding a replacement.<\/p>\n<p>Exclusions, limitations and renewability depend on the policy form and the insurer. The coverage review covers these before any application.<\/p>\n<h2>How it supports investor confidence after a founder&#8217;s death<\/h2>\n<p>Key person insurance for investors gives a funded answer to one question: what happens to the company if a founder dies? A founder&#8217;s death can disrupt operations, customer relationships, strategy and the timeline for returning capital. Investors and lenders may ask how the company would handle that risk.<\/p>\n<p>A policy is one item in that answer. It does not decide how any investor or lender will respond.<\/p>\n<p>Co-owners sometimes agree in advance how a departing owner&#8217;s share will be bought. A policy can help fund a buy-sell purchase when the agreement is built for that use.<\/p>\n<p>Before buying, check the investor and lender agreements. They set the coverage amount, beneficiary and ownership structure the company must provide. Those requirements vary from deal to deal.<\/p>\n<h2>How the process works, step by step<\/h2>\n<p>The process moves from documenting the risk to a coverage review, an application, underwriting and ongoing review.<\/p>\n<ol>\n<li><strong>Document the dependence.<\/strong> List the revenue, relationships, licenses and investor or lender requirements tied to the person.<\/li>\n<li><strong>Hold a coverage review.<\/strong> The agent and CPA discuss the company&#8217;s need, whether term or whole life fits, and who will own and fund the policy.<\/li>\n<li><strong>Complete the application.<\/strong> Health questions are required, and issue may depend on insurability.<\/li>\n<li><strong>Underwriting.<\/strong> The insurer reviews the application and issues the policy or makes an offer. Timing varies with the insurer&#8217;s process and the insured&#8217;s health history.<\/li>\n<li><strong>Ongoing review.<\/strong> Revisit the coverage amount when financing, ownership or investor terms change.<\/li>\n<\/ol>\n<p>Term life insurance covers a set period. Whole life insurance is permanent coverage. The <a href=\"https:\/\/content.naic.org\/sites\/default\/files\/publication-lig-lp-consumer-life.pdf\">NAIC Life Insurance Buyer&#8217;s Guide<\/a> explains term versus permanent life insurance and what to ask before buying.<\/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 points a CPA reviews<\/h2>\n<p>Under federal law, a death benefit is generally excluded from gross income, but exceptions can change the result. The general rule and its exceptions appear in <a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/26\/101\">26 U.S.C. \u00a7 101<\/a>. Those rules for employer-owned policies include written notice to the employee that the company intends to insure his or her life.<\/p>\n<p>Section 101(j) limits the income exclusion for employer-owned life insurance contracts unless the notice and consent requirements are met and an exception applies. Under <a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/26\/6039I\">26 U.S.C. \u00a7 6039I<\/a>, an employer that owns one or more employer-owned life insurance contracts issued after that section was enacted must file an information return for each year such contracts are owned. The return reports the number of employees at the end of the year, the number of those employees insured under the contracts, the total insurance in force, the policyholder&#8217;s name, address, taxpayer identification number and type of business, and that the policyholder has a valid consent for each insured employee or, if not all consents were obtained, the number of insured employees for whom consent was not obtained.<\/p>\n<p>Under <a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/26\/264\">26 U.S.C. \u00a7 264<\/a>, interest paid on debt connected with a life insurance policy you own on an individual&#8217;s life is generally not deductible. A narrow exception applies only to a key person, defined as an officer or 20-percent owner, with a cap on how many individuals may be treated as key persons. It covers interest only to the extent the aggregate debt on policies covering that individual does not exceed $50,000, and it is further limited by an interest rate cap.<\/p>\n<p>On the cash flow side, a CPA reviews premiums against the company&#8217;s budget and other obligations. The CPA also checks how premiums are treated on the company&#8217;s books.<\/p>\n<p>The firm is a CPA firm. Its insurance work is offered by its licensed agent, separately from the accounting practice. If the firm accepts a commission for the sale of a product or service to you, <a href=\"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&amp;URL=0400-0499\/0473\/Sections\/0473.3205.html\">Fla. Stat. \u00a7 473.3205<\/a> requires the firm to disclose that fact to you in writing, in accordance with rules adopted by the Florida Board of Accountancy. See <a href=\"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&amp;URL=0400-0499\/0473\/Sections\/0473.3205.html\">Fla. Stat. \u00a7 473.3205<\/a>.<\/p>\n<h2>Who may not qualify and what affects the cost<\/h2>\n<p>A person may not qualify if the insurer&#8217;s underwriting finds that health, age or other factors fall outside its requirements.<\/p>\n<p>One legal point comes first. 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(1)<\/a>, an insurance contract on another person&#8217;s life may pay benefits only to the insured, to the insured&#8217;s personal representatives, or to a person having an insurable interest in the insured when the contract is made. See <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>. See <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>.<\/p>\n<p>The main cost drivers are the insured&#8217;s age, health history, the coverage amount, the policy type and the policy&#8217;s features. This page does not quote premiums. The insurer, the underwriting and the facts of the company all shape the figure, and the coverage review is where those details get reviewed.<\/p>\n<p>If the insured leaves the company, review ownership and beneficiary with the agent.<\/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\/financial-planning-tools-including-a-calculator-and-printed-photo.jpg\" alt=\"Financial planning tools, including a calculator and printed graphs, arranged on a desk.\" 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>Is key person insurance worth it?<\/summary><p>It can make sense when losing one person would strain the company&#8217;s cash or its lender relationships. A coverage review weighs that need against the company&#8217;s cash position.<\/p><\/details><details class=\"wp-block-details chg-faq is-layout-flow wp-block-details-is-layout-flow\"><summary>What does key person insurance cover?<\/summary><p>It pays a death benefit to the business. The business decides how to use that money.<\/p><\/details><details class=\"wp-block-details chg-faq is-layout-flow wp-block-details-is-layout-flow\"><summary>Can the company borrow against a key person policy?<\/summary><p>A whole life policy that has built a cash surrender value may allow a policy loan, and a policy loan can accrue interest and reduce the policy&#8217;s values. Under <a href=\"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&amp;URL=0600-0699\/0627\/Sections\/0627.458.html\">Fla. Stat. \u00a7 627.458<\/a>, if the policy so provides, it terminates when the total indebtedness, including interest due or accrued, equals or exceeds the loan value, but not until the insurer has mailed at least 30 days&#8217; notice, and that section does not apply to term policies or to term insurance benefits provided by riders or supplemental policy provisions.<\/p><\/details><details class=\"wp-block-details chg-faq is-layout-flow wp-block-details-is-layout-flow\"><summary>Who is not eligible?<\/summary><p>Health questions are required, and issue may depend on insurability. 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(1)<\/a>, an insurance contract on another person&#8217;s life may pay benefits only to the insured, to the insured&#8217;s personal representatives, or to a person having an insurable interest in the insured at the time the contract is made. Section 627.404(6) adds that, for purposes of that section, a proposed insured who has capacity to contract gives written consent by signing the application for insurance.<\/p>\n<p>If you are reviewing an investor term sheet or lender request after a founder&#8217;s loss, or planning before one arrives, this is a hard decision. Contact NR CPAs &amp; Business Advisors to set up a coverage review at <a href=\"https:\/\/nrcpas.com\/contact\">nrcpas.com\/contact<\/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\">How Key Person Insurance Fits Into Your Planning<\/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--shield\"><\/span><\/p><h3 class=\"wp-block-heading\">A business-owned death benefit<\/h3><p class=\"wp-block-paragraph\">The company owns the policy and is named as beneficiary. If the insured key person dies, the death benefit is paid to the business, which decides how to use the funds.<\/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--check\"><\/span><\/p><h3 class=\"wp-block-heading\">Cash flow and lender concerns<\/h3><p class=\"wp-block-paragraph\">We look at how losing one person could affect revenue, payroll, debt covenants and lender relationships, so the coverage amount reflects your company&#x27;s real exposure.<\/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\">A CPA&#x27;s view of tax<\/h3><p class=\"wp-block-paragraph\">How premiums and proceeds are treated for tax purposes depends on the facts of your business and policy. We review those questions with you before you decide.<\/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\">Coordination with buy-sell planning<\/h3><p class=\"wp-block-paragraph\">Key person coverage can work alongside a buy-sell agreement and estate planning goals. We help you see how the pieces fit together.<\/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 Disclosures<\/h3><p class=\"wp-block-paragraph\">Insurance is offered through Nischay Rawal, a licensed insurance agent, separately from the firm&#x27;s accounting practice. Key person insurance requires health questions, and issue may depend on insurability. Dividends, where applicable, are not guaranteed. A death benefit is paid only under the terms, limitations and exclusions of the 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 talk through your 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\">Call us today to talk through your coverage review<\/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\">What to Expect in a Coverage Review<\/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\">Share your business picture<\/h3><p class=\"wp-block-paragraph\">Tell us about the key person, the company&#x27;s structure, its debts and how much the business relies on that individual.<\/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\">Review the need<\/h3><p class=\"wp-block-paragraph\">We discuss the potential financial impact of a loss and how key person coverage could fit into your 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\">Understand the policy<\/h3><p class=\"wp-block-paragraph\">We explain the type of policy, its premium structure, its limitations and exclusions, and any terms that can change over time, in plain words.<\/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\">Decide with clear information<\/h3><p class=\"wp-block-paragraph\">You choose whether to move forward. Our team stays available to answer questions as your business changes.<\/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\">Protect your loved ones and the business they depend on<\/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 to schedule your 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 your coverage review<\/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-key-person-insurance-for-law-firm\/\">Key Person Insurance for a Law Firm: Covering a Partner Whose Work Keeps the Firm Running<\/a><\/li><li><a href=\"\/life-insurance-guides\/key-person-insurance\/key-person-insurance-key-person-insurance-for-partnership\/\">Key Person Insurance for a Partnership: Protecting a General Partner Whose Death Changes the Business<\/a><\/li><li><a href=\"\/life-insurance-guides\/key-person-insurance\/key-person-insurance-key-person-insurance-for-single-owner-company\/\">Key Person Insurance for a Single-Owner Company: When the Owner Is the Only Person Who Can Run It<\/a><\/li><li><a href=\"\/life-insurance-guides\/key-person-insurance\/key-person-insurance-key-person-insurance-when-key-person-moves-abroad\/\">Can Key Person Insurance Stay in Force If the Key Employee Moves Abroad?<\/a><\/li><li><a href=\"\/life-insurance-guides\/key-person-insurance\/key-person-insurance-key-person-policy-when-insured-owner-leaves\/\">What Happens to a Key Person Policy When the Insured Owner Retires or Leaves the Company?<\/a><\/li><\/ul>\n<\/nav>\n<!-- \/chg:section-siblings -->","protected":false},"excerpt":{"rendered":"<p>How key person insurance can help a company with outside investors plan for a founder&#8217;s death. Insurance is offered by a licensed agent.<\/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-key-person-insurance-for-company-with-investors\/\"}, {\"hreflang\": \"es\", \"href\": \"https:\/\/nrcpas.com\/life-insurance-guides\/es\/seguro-persona-clave\/seguro-personas-clave-empresas-inversores\/\"}, {\"hreflang\": \"x-default\", \"href\": \"https:\/\/nrcpas.com\/life-insurance-guides\/key-person-insurance\/key-person-insurance-key-person-insurance-for-company-with-investors\/\"}]","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\": \"Is key person insurance worth it?\", \"acceptedAnswer\": {\"@type\": \"Answer\", \"text\": \"It can make sense when losing one person would strain the company's cash or its lender relationships. A coverage review weighs that need against the company's cash position.\"}}, {\"@type\": \"Question\", \"name\": \"What does key person insurance cover?\", \"acceptedAnswer\": {\"@type\": \"Answer\", \"text\": \"It pays a death benefit to the business. The business decides how to use that money.\"}}, {\"@type\": \"Question\", \"name\": \"Can the company borrow against a key person policy?\", \"acceptedAnswer\": {\"@type\": \"Answer\", \"text\": \"A whole life policy that has built a cash surrender value may allow a policy loan, and a policy loan can accrue interest and reduce the policy's values. Under Fla. Stat. \u00a7 627.458, if the policy so provides, it terminates when the total indebtedness, including interest due or accrued, equals or exceeds the loan value, but not until the insurer has mailed at least 30 days' notice, and that section does not apply to term policies or to term insurance benefits provided by riders or supplemental policy provisions.\"}}, {\"@type\": \"Question\", \"name\": \"Who is not eligible?\", \"acceptedAnswer\": {\"@type\": \"Answer\", \"text\": \"Health questions are required, and issue may depend on insurability. Under Fla. Stat. \u00a7 627.404(1), an insurance contract on another person's life may pay benefits only to the insured, to the insured's personal representatives, or to a person having an insurable interest in the insured at the time the contract is made. Section 627.404(6) adds that, for purposes of that section, a proposed insured who has capacity to contract gives written consent by signing the application for insurance. 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