{"id":4924,"date":"2026-10-25T09:26:10","date_gmt":"2026-10-25T09:26:10","guid":{"rendered":"https:\/\/nrcpas.com\/life-insurance-guides\/key-person-insurance\/key-person-insurance-for-owners-over-60\/"},"modified":"2026-10-31T04:53:30","modified_gmt":"2026-10-31T04:53:30","slug":"key-person-insurance-for-owners-over-60","status":"publish","type":"page","link":"https:\/\/nrcpas.com\/life-insurance-guides\/key-person-insurance\/key-person-insurance-for-owners-over-60\/","title":{"rendered":"Key Person Insurance for Owners Over 60 | Miami"},"content":{"rendered":"\n
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Key Person Insurance | Miami<\/p>

Key person coverage for business owners over 60, planned with a CPA's view<\/h1>

NR CPAs & Business Advisors helps Miami-area owners and their families look at key person life insurance in terms of coverage, cash flow and tax. Insurance is offered by Nischay Rawal, a licensed insurance agent, separately from the accounting practice.<\/p>

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Call us today<\/a><\/div><\/div>\n<\/div><\/div>\n\n\n

By Nischay Rawal \u00b7 Published October 25, 2026<\/p>\n\n

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Key person insurance for owners over 60 is a life insurance policy that a business owns on a key person. If that person dies, the death benefit goes to the company. Health questions and age shape whether an insurer will issue the policy and what it costs.<\/p>\n

This guide explains how the policy works, how insurers review older owners, the alternatives to insurance, and what a coverage review looks at. NR CPAs & Business Advisors is a Miami CPA firm. Insurance is offered by its licensed agent, separately from the accounting practice.<\/p>\n

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

Key person life insurance is a life insurance policy a business owns on a person whose death would cause the company a financial loss. Three parties are involved: the business as owner and beneficiary, the insured key person, and the insurer that issues the policy. The Insurance Information Institute<\/a> says key person life or disability insurance compensates a business for financial losses caused by a key employee’s death or disability.<\/p>\n

A key person is someone the company depends on. That can be an owner, a senior manager, or an employee with unique skills whose role brings in revenue, supports a loan, or holds client relationships.<\/p>\n

Owners over 60 often raise this question for practical reasons. Succession may be on the calendar. Fewer working years may remain. Lenders or partners may ask how the company would keep running if the owner were gone. If you’re reviewing this for a parent or partner, the review starts from that business’s facts.<\/p>\n\n

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Not sure what your next step is?<\/h3>

Talk it through with our team — we can walk you through how a situation like yours is usually handled and what your options are.<\/p>

Schedule a coverage review<\/a><\/div>
Schedule a coverage review<\/a><\/div><\/div>\n<\/div>\n

What the policy covers and how the amount is set<\/h2>\n

The policy pays a death benefit to the business, and the business decides how to use the money. Common uses include repaying company debt, covering payroll while the company finds a replacement, and paying for recruiting and training.<\/p>\n

Florida law sets a basic rule. A business may insure a key person only if it gets that person’s written consent before buying the policy. The business may not retaliate against a key person who refuses. The Fla. Stat. \u00a7 627.404<\/a> insurable interest need not exist after the coverage starts.<\/p>\n

Owners often estimate the amount using lost profits, money the company owes or is owed, the cost to hire and train a replacement, and any loan covenants. These figures give a starting point, not a final answer.<\/p>\n

A term life insurance policy covers a set period. Fla. Stat. \u00a7 627.404<\/a> reads: “(5) A contract of insurance upon a person, other than a policy of prepaid funeral contract; group life insurance; or group or blanket accident, health, or disability insurance, may not be carried out unless, on or before the time of entering into such contract, the person insured, having legal capacity to contract, applies for or consents in writing to the contract and its terms, except that any person having an insurable interest in the life of a minor younger than 15 years of age or any person upon whom a minor younger than 15 years of age is dependent for support and maintenance may obtain a policy of insurance on the minor.” A whole life insurance policy is designed to provide coverage for the insured’s lifetime, as long as premiums are paid as the contract requires, and it can build cash value. The NAIC Life Insurance Buyer’s Guide<\/a> explains the differences between term and permanent coverage. Whole life dividends are not guaranteed, so the review shows guaranteed and non-guaranteed values separately. Key person coverage differs from buy-sell agreement insurance and estate planning life insurance, which serve other purposes.<\/p>\n

Why age 60 changes the underwriting picture<\/h2>\n

Insurers usually review an owner over 60 with health questions. They may also require an exam or medical records. A fully underwritten policy asks these questions, and issue may depend on insurability.<\/p>\n

Insurers weigh several factors for older applicants:<\/p>\n