{"id":6136,"date":"2026-10-27T04:27:03","date_gmt":"2026-10-27T04:27:03","guid":{"rendered":"https:\/\/nrcpas.com\/life-insurance-guides\/key-person-insurance\/key-man-life-insurance-engineering-firm\/"},"modified":"2026-10-29T23:26:12","modified_gmt":"2026-10-29T23:26:12","slug":"key-man-life-insurance-engineering-firm","status":"publish","type":"page","link":"https:\/\/nrcpas.com\/life-insurance-guides\/key-person-insurance\/key-man-life-insurance-engineering-firm\/","title":{"rendered":"Key Man Life Insurance for Engineering Firms in Florida"},"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-80 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-6133\" alt=\"Engineers reviewing blueprints together at a drafting table in a bright Florida engineering office.\" src=\"https:\/\/nrcpas.com\/life-insurance-guides\/wp-content\/uploads\/2026\/10\/engineers-reviewing-blueprints-together-at-a-drafting-table-photo.jpg\" width=\"1376\" height=\"768\" srcset=\"https:\/\/nrcpas.com\/life-insurance-guides\/wp-content\/uploads\/2026\/10\/engineers-reviewing-blueprints-together-at-a-drafting-table-photo-150x150.jpg 150w, https:\/\/nrcpas.com\/life-insurance-guides\/wp-content\/uploads\/2026\/10\/engineers-reviewing-blueprints-together-at-a-drafting-table-photo-300x167.jpg 300w, https:\/\/nrcpas.com\/life-insurance-guides\/wp-content\/uploads\/2026\/10\/engineers-reviewing-blueprints-together-at-a-drafting-table-photo-768x429.jpg 768w, https:\/\/nrcpas.com\/life-insurance-guides\/wp-content\/uploads\/2026\/10\/engineers-reviewing-blueprints-together-at-a-drafting-table-photo-1024x572.jpg 1024w, https:\/\/nrcpas.com\/life-insurance-guides\/wp-content\/uploads\/2026\/10\/engineers-reviewing-blueprints-together-at-a-drafting-table-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 Engineering Firms<\/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 Engineering Firm&#x27;s Future with Key Man Life Insurance<\/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 engineering firms in Miami, Fort Lauderdale, West Palm Beach, Orlando, Tampa and Jacksonville plan key person coverage, with a CPA&#x27;s view of tax and cash flow.<\/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 27, 2026<\/p>\n\n<article lang=\"en\">\n\n\n<p>Key man life insurance is a policy a business buys on the life of a key person, such as a principal whose clients, contracts or leadership the firm relies on. If that person dies, the policy pays the business, not the family. This guide explains how the coverage works for engineering and design firms in Florida, what it pays for and what it doesn&#8217;t, and how a coverage review starts.<\/p>\n<h2>What Key Man Life Insurance Is and Who It Is For<\/h2>\n<p>Key man life insurance is life insurance the firm owns on a principal whose loss would hurt the business. Many people also call it <a href=\"\/life-insurance-guides\/key-person-insurance\/\">key person insurance<\/a> or keyman insurance. 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> explains that this coverage compensates a business for financial losses caused by a key employee&#8217;s death or disability.<\/p>\n<p>Three roles are involved:<\/p>\n<ul>\n<li><strong>The firm<\/strong> owns the policy and pays the premiums.<\/li>\n<li><strong>The principal<\/strong> is the insured person.<\/li>\n<li><strong>The firm<\/strong> is the beneficiary and receives the death benefit.<\/li>\n<\/ul>\n<p>Engineering and design firms often fit this profile when one principal holds the main client relationships, signs major contracts or leads the largest projects. Ask a few direct questions. Which person&#8217;s sudden absence would stall active projects? Which client contracts depend on that person? Could the firm cover payroll and rent while it finds a replacement?<\/p>\n<p>Because the firm is the beneficiary, the firm decides how to use the money. It might cover lost revenue, recruit a replacement or fund a buy-out. The family&#8217;s own needs call for separate planning.<\/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\/close-up-of-an-engineering-desk-with-blueprints-a-calculator-photo.jpg\" alt=\"Close-up of an engineering desk with blueprints, a calculator, and a hard hat beside a laptop in a Florida 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>Key Man Life Insurance vs. Personal Life Insurance<\/h2>\n<p>Key man and personal life insurance use the same kind of contract, but the owner, the beneficiary and the purpose differ. A personal policy protects the insured&#8217;s family. A key man policy protects the business from the money it loses when that person dies.<\/p>\n<p>Ownership matters for taxes. If the insured person holds rights in a policy at death, the proceeds can count toward the estate. That is why the firm usually owns the policy, and the ownership should be set on purpose.<\/p>\n<p>Florida law also sets rules before a business can buy this coverage. A business needs an insurable interest in the person. <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> allows a business to hold that interest in its owners, directors, officers, partners, and managers, in any affiliate or subsidiary of the business, and in key employees or key persons. The person must consent in writing before the policy is bought, and the business may not retaliate against someone who says no.<\/p>\n<p>A principal may already own personal coverage. That policy pays the family, not the firm, so it may not answer the firm&#8217;s need. Don&#8217;t assume existing coverage protects the business.<\/p>\n<h2>What the Policy Covers, and What It Does Not<\/h2>\n<p>A key man policy pays a death benefit to the firm. It does not run the business, keep clients or replace legal documents.<\/p>\n<ul>\n<li><strong>Term life<\/strong> covers the insured for a set period of years.<\/li>\n<li><strong>Whole life<\/strong> is permanent coverage that builds cash value. Dividends, if a policy pays them, are not guaranteed. Guaranteed and non-guaranteed values are different, so it helps to look at each one on its own.<\/li>\n<\/ul>\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> explains term versus permanent coverage and the questions to ask before buying.<\/p>\n<p>Health questions are required. Whether the policy is issued depends on insurability, so the insurer&#8217;s decision rests on those answers.<\/p>\n<p>Tax rules matter too. <a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/26\/264\">26 U.S.C. \u00a7 264<\/a> says no deduction is allowed for premiums on a life insurance policy when the taxpayer is directly or indirectly a beneficiary. A common mistake is assuming the premiums are deductible. Under <a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/26\/101\">26 U.S.C. \u00a7 101<\/a>, amounts paid under a life insurance contract because of the insured&#8217;s death are usually left out of gross income, subject to the exceptions that section lists. For an employer-owned contract, such as a key person policy owned by the business, subsection (j) limits the amount left out of the policyholder&#8217;s gross income to the premiums and other amounts it paid for the contract, unless one of that subsection&#8217;s exceptions applies. Your firm&#8217;s tax position depends on the facts, so review it with your tax adviser before you buy.<\/p>\n<h2>How the Process Works, Step by Step<\/h2>\n<p>The process runs from a coverage review through application, issue and a yearly check. Each step gives the firm facts it needs before it commits.<\/p>\n<ol>\n<li><strong>Coverage review.<\/strong> Nischay Rawal, the licensed insurance agent on this page, maps the principal&#8217;s role, client exposure, debts and the loss scenarios the firm worries about.<\/li>\n<li><strong>Gather information.<\/strong> The firm provides financial statements, ownership details, the principal&#8217;s health history and any existing life or disability coverage.<\/li>\n<li><strong>Compare options.<\/strong> Term and whole life are compared for the stated purpose. Illustrations show guaranteed and non-guaranteed values side by side.<\/li>\n<li><strong>Application and underwriting.<\/strong> The principal answers health questions, and the insurer may set medical requirements.<\/li>\n<li><strong>Issue and delivery.<\/strong> The insurer issues the policy, and the firm receives it.<\/li>\n<li><strong>Yearly review.<\/strong> Coverage gets checked as the principal&#8217;s role and the firm&#8217;s debts change. If the policy is employer-owned and was issued after the date this section was enacted (August 17, 2006), the applicable policyholder must file a return for each year the contracts are owned, as shown in <a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/26\/6039I\">26 U.S.C. \u00a7 6039I<\/a>. The return reports the number of employees, the number of those employees insured, the total amount of insurance in force at the end of the year, the policyholder&#8217;s name, address, taxpayer identification number and type of business, and whether a valid consent is on file for each insured employee (or how many insured employees lack consent).<\/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>Other Ways Firms Cover a Principal&#8217;s Loss, and How They Compare<\/h2>\n<p>Firms often use personal funds, company cash flow, borrowing or a business sinking fund. Each has limits, and a firm may combine them.<\/p>\n<ul>\n<li><strong>Personal funds.<\/strong> The owners pay from their own money. That can strain their households at the worst time.<\/li>\n<li><strong>Company cash flow.<\/strong> Revenue may dip right after a loss while expenses continue. Cash may not cover the gap.<\/li>\n<li><strong>Borrowing.<\/strong> A loan adds debt when the firm needs stability most. The lender sets the terms at that time.<\/li>\n<li><strong>Sinking fund.<\/strong> The firm sets aside reserves over time. Building a meaningful amount can take years.<\/li>\n<\/ul>\n<p>Key man coverage pays a set sum on the principal&#8217;s death, and the firm can plan for that cost in advance. It does not replace operational planning or client succession.<\/p>\n<h2>Why Work With NR CPAs and Nischay Rawal<\/h2>\n<p>NR CPAs &amp; Business Advisors is a Miami CPA firm. It helps business owners with accounting and tax. It also helps families, professionals and business owners choose and buy life insurance, including key person coverage.<\/p>\n<ul>\n<li><strong>A CPA&#8217;s view of cash flow.<\/strong> The firm looks at how premiums, proceeds and business cash flow connect to the firm&#8217;s tax position. That review includes the client&#8217;s tax adviser.<\/li>\n<li><strong>A licensed agent for insurance.<\/strong> Nischay Rawal acts as a licensed insurance agent on this page. <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> requires an agent to be licensed and appointed before acting as one.<\/li>\n<li><strong>Separate services.<\/strong> Insurance is offered by the licensed agent, separately from the accounting practice.<\/li>\n<li><strong>Commission disclosure.<\/strong> If the agent earns a commission on a policy, the firm discloses that in writing. <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 this for a CPA firm that accepts a commission.<\/li>\n<li><strong>Fees.<\/strong> Any fee for a coverage review is stated in writing before work begins.<\/li>\n<\/ul>\n<h2>Frequently Asked Questions<\/h2>\n<p>Here are short answers to common questions about key man coverage.<\/p><details class=\"wp-block-details chg-faq is-layout-flow wp-block-details-is-layout-flow\"><summary>Who is not eligible for key person coverage?<\/summary><p>A business needs an insurable interest in the person and that person&#8217;s written consent. The insurer also reviews health and other factors and may decline the application.<\/p><\/details><details class=\"wp-block-details chg-faq is-layout-flow wp-block-details-is-layout-flow\"><summary>Why is life insurance taken out on a key employee?<\/summary><p>It protects the business from money lost when that person dies. The proceeds can help with revenue gaps, hiring and client continuity.<\/p><\/details><details class=\"wp-block-details chg-faq is-layout-flow wp-block-details-is-layout-flow\"><summary>Can the firm use the proceeds for anything?<\/summary><p>The business, as beneficiary, chooses how to use the death benefit. Its own debts and obligations still apply.<\/p><\/details><details class=\"wp-block-details chg-faq is-layout-flow wp-block-details-is-layout-flow\"><summary>Does key man coverage replace a buy-sell agreement?<\/summary><p>No. It can help fund one, but a buy-sell agreement needs its own legal documents.<\/p><\/details><details class=\"wp-block-details chg-faq is-layout-flow wp-block-details-is-layout-flow\"><summary>What happens if the principal retires or leaves?<\/summary><p>Review ownership and beneficiary choices before any change. Surrender can bring charges and tax effects. If an agent recommends surrender without recommending a replacement, <a href=\"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&amp;URL=0600-0699\/0627\/Sections\/0627.4553.html\">Fla. Stat. \u00a7 627.4553<\/a> requires written information first.<\/p><\/details><details class=\"wp-block-details chg-faq is-layout-flow wp-block-details-is-layout-flow\"><summary>How long does a policy take to issue?<\/summary><p>Underwriting time varies by insurer and by how fast the firm sends records.<\/p><\/details>\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\/architects-in-hardhats-review-construction-blueprints-togeth-photo.jpg\" alt=\"Architects in hardhats review construction blueprints together in a modern office.\" style=\"border-radius:8px;width:100%;aspect-ratio:16\/9;object-fit:cover\"\/><\/figure>\n<h2>Talk With Us About Your Firm&#8217;s Principal Coverage<\/h2>\n<p>If a principal&#8217;s illness or sudden loss has left your firm uncertain, a coverage review is a good place to start. You may be researching this for a partner or co-owner after a hard change. You don&#8217;t need to have decided anything yet.<\/p>\n<p>Protecting the firm can also protect the families who rely on its people. <a href=\"https:\/\/nrcpas.com\/contact\">Call NR CPAs &amp; Business Advisors<\/a> to set up a coverage review about your principal&#8217;s role and your firm&#8217;s exposure.<\/p>\n\n<\/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 for engineering firms<\/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--users\"><\/span><\/p><h3 class=\"wp-block-heading\">Focus on the people who drive revenue<\/h3><p class=\"wp-block-paragraph\">We help you identify the engineers, principals and project leaders whose loss would disrupt client work, bids and cash flow.<\/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\">Coverage sized to the business<\/h3><p class=\"wp-block-paragraph\">We discuss how much coverage fits your firm&#x27;s obligations, such as lost revenue, recruiting costs and debt, so the plan reflects your situation.<\/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 and cash flow<\/h3><p class=\"wp-block-paragraph\">Premiums, policy values and proceeds can affect your books and taxes. We review those effects with you before you decide.<\/p><\/div><\/div>\n\n\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--shield\"><\/span><\/p><h3 class=\"wp-block-heading\">Buy-sell and succession planning<\/h3><p class=\"wp-block-paragraph\">Where owners are involved, we discuss how key person and buy-sell agreement insurance can support an orderly transition.<\/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--info\"><\/span><\/p><h3 class=\"wp-block-heading\">Insurance offered separately<\/h3><p class=\"wp-block-paragraph\">Insurance is offered through Nischay Rawal, a licensed insurance agent, separately from the firm&#x27;s accounting practice.<\/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\">Health questions apply<\/h3><p class=\"wp-block-paragraph\">Key person insurance is fully underwritten. Health questions are required, and whether a policy is issued may depend on the insured person&#x27;s insurability. Premiums, benefits and any age-based changes depend on the policy issued.<\/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 for 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\">Call us today for a 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 a coverage review covers<\/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\">Your firm&#x27;s key people<\/h3><p class=\"wp-block-paragraph\">We review which roles would be hardest to replace and how their absence could affect projects and client relationships.<\/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\">Policy options<\/h3><p class=\"wp-block-paragraph\">We explain term life, whole life and related coverage in plain words, including how each type works and its limits.<\/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\">Tax and cash flow<\/h3><p class=\"wp-block-paragraph\">We discuss how premiums and proceeds may affect your firm&#x27;s financial statements and tax position.<\/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\">Next steps<\/h3><p class=\"wp-block-paragraph\">We outline a plan your firm can review with its partners, advisors and attorneys before any policy is applied for.<\/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 firm you have built<\/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 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>\n\n<h2 class=\"wp-block-heading\">Related practice areas<\/h2><ul class=\"wp-block-list\"><li><a href=\"\/life-insurance-guides\/key-person-insurance\/key-person-insurance-real-estate-brokerage\/\">Key Person Insurance for a Real Estate Brokerage: Covering the Broker Who Holds the Listings<\/a><\/li><\/ul>\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-coverage-months-of-lost-profit\/\">How Many Months of Lost Profit Should Key Person Coverage Replace?<\/a><\/li><li><a href=\"\/life-insurance-guides\/key-person-insurance\/key-person-insurance-accounting-firm\/\">Key Person Insurance for Accounting and CPA Firms<\/a><\/li><li><a href=\"\/life-insurance-guides\/key-person-insurance\/key-person-insurance-borrow-against-key-person-policy-cash-value\/\">Can a Company Borrow Against Its Key Person Policy&#x27;s Cash Value?<\/a><\/li><li><a href=\"\/life-insurance-guides\/key-person-insurance\/key-person-insurance-business-loan-owner-death\/\">What Happens to a Business Loan If the Owner Dies? How Lenders Think About Key Person Coverage<\/a><\/li><li><a href=\"\/life-insurance-guides\/key-person-insurance\/key-person-insurance-business-partners\/\">Key Person Insurance for Business Partners: Funding a Cross-Purchase Agreement<\/a><\/li><\/ul>\n<\/nav>\n<!-- \/chg:section-siblings -->","protected":false},"excerpt":{"rendered":"<p>Key man life insurance for engineering firms: what the policy covers, the tax rules, and how a coverage review with a licensed agent 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-man-life-insurance-engineering-firm\/\"}, {\"hreflang\": \"es\", \"href\": \"https:\/\/nrcpas.com\/life-insurance-guides\/es\/seguro-persona-clave\/seguro-vida-personal-clave-ingenieria\/\"}, {\"hreflang\": \"x-default\", \"href\": \"https:\/\/nrcpas.com\/life-insurance-guides\/key-person-insurance\/key-man-life-insurance-engineering-firm\/\"}]","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\": \"Who is not eligible for key person coverage?\", \"acceptedAnswer\": {\"@type\": \"Answer\", \"text\": \"A business needs an insurable interest in the person and that person's written consent. 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