{"id":7007,"date":"2026-10-28T07:53:26","date_gmt":"2026-10-28T07:53:26","guid":{"rendered":"https:\/\/nrcpas.com\/life-insurance-guides\/key-person-insurance\/key-person-insurance-personal-guarantee\/"},"modified":"2026-10-29T23:31:52","modified_gmt":"2026-10-29T23:31:52","slug":"key-person-insurance-personal-guarantee","status":"publish","type":"page","link":"https:\/\/nrcpas.com\/life-insurance-guides\/key-person-insurance\/key-person-insurance-personal-guarantee\/","title":{"rendered":"Key Person Insurance Personal Guarantee | Miami, FL"},"content":{"rendered":"\n
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Key Person Insurance | Miami, FL<\/p>

Protect Your Business When a Key Person Is Lost<\/h1>

Key person life insurance from NR CPAs & Business Advisors helps Miami business owners plan for the financial impact of losing a key person, with a CPA's view of tax and cash flow.<\/p>

Call Us Today to Schedule a Coverage Review<\/a><\/div>
Call Us Today to Schedule a Coverage Review<\/a><\/div><\/div>\n<\/div><\/div>\n\n\n

By Nischay Rawal \u00b7 Published October 28, 2026<\/p>\n\n

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A personal guarantee means you agree to repay a business loan yourself if the company cannot. Key person insurance<\/a> is a life insurance policy a business buys on an essential person, so the company has funds if that person dies. Together, these two pieces can shape how a loan is protected. This page explains both, the questions to ask your lender, and where a CPA’s view of tax and cash flow fits. Insurance is offered through a licensed insurance agent, separately from the accounting practice.<\/p>\n

What Key Person Insurance Is and Who It Protects<\/h2>\n

Key person insurance is a life insurance policy that a business owns on a person whose death or disability would cause it financial loss. The Insurance Information Institute<\/a> describes it as a life or disability policy a business takes out on a key employee. The business pays the premiums and receives the benefit.<\/p>\n

The money helps the company through the gap. It can go toward lost revenue, the cost of finding and training a replacement, or debt payments while the business adjusts.<\/p>\n

Key persons often include owners, senior managers and people whose skills tie closely to revenue.<\/p>\n

The usual designs are term life insurance and whole life insurance. Each works differently, so the choice affects both the cost and the outcome.<\/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 a Personal Guarantee on a Business Loan Puts at Risk<\/h2>\n

A personal guarantee makes you responsible for a business debt if the company does not pay it. Read the guarantee before you sign. Check whether it has a set limit or no limit.<\/p>\n

Florida law bars a lawsuit on a promise to pay another person’s debt unless the promise is in writing and signed by the person being charged. Even so, a signed guarantee is a serious commitment.<\/p>\n

If the business cannot pay, the lender may look to your personal assets. Those can include your home, savings or investments, based on the wording of the loan documents.<\/p>\n

Some lenders ask about an owner’s health and life because those events can affect repayment. That is why the guarantee and the insurance question often come up together.<\/p>\n

For a spouse or children, a guarantee can turn a business loan into a family problem. The money they rely on could end up going toward the debt.<\/p>\n

How Lenders View Key Person Coverage Alongside a Guarantee<\/h2>\n

Some lenders accept a life insurance policy as part of a loan. Terms differ from one lender to the next, so ask early.<\/p>\n

An assignment is paperwork that ties the policy to the loan. Florida’s policy loan rules refer to a proper assignment or pledge of the policy. They also do not apply to term policies. Term and whole life can work differently in a loan file.<\/p>\n

Ask the lender these questions before you sign:<\/p>\n