{"id":8092,"date":"2026-10-30T05:21:31","date_gmt":"2026-10-30T05:21:31","guid":{"rendered":"https:\/\/nrcpas.com\/life-insurance-guides\/key-person-insurance\/key-person-insurance-l-1-executive\/"},"modified":"2026-10-30T06:55:25","modified_gmt":"2026-10-30T06:55:25","slug":"key-person-insurance-l-1-executive","status":"publish","type":"page","link":"https:\/\/nrcpas.com\/life-insurance-guides\/key-person-insurance\/key-person-insurance-l-1-executive\/","title":{"rendered":"Key Person Insurance for L-1 Executive | NR CPAs"},"content":{"rendered":"\n
<\/span>\"Senior
\n

Key Person Insurance | Miami, Florida<\/p>

Key Person Insurance for L-1 Executives<\/h1>

A key executive's death or disability can affect your company's revenue, lenders and plans. NR CPAs & Business Advisors, a Miami CPA firm, helps business owners review key person coverage with a view of tax and cash flow.<\/p>

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

By Nischay Rawal \u00b7 Published October 30, 2026<\/p>\n\n

\n\n\n

Key person insurance for an L-1 executive is a life insurance policy that a US company owns on that executive. If the executive dies, the policy usually pays the company, not the family. The company then decides how to use the money to cover the loss.<\/p>\n

This page explains how that works when the key person is a transferee running a US subsidiary. It covers ownership, the beneficiary, underwriting, and the tax points to review with a CPA.<\/p>\n

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

Key person insurance<\/a> is life insurance a business buys on someone whose death would hurt the business financially. The Insurance Information Institute<\/a> explains that this coverage helps compensate a business for financial losses caused by an employee’s death or disability.<\/p>\n

Typical key persons include the top leader of a US subsidiary and a senior manager with critical customer relationships or specialized know-how. When a foreign parent company sends an executive to run the US operation, that person often fits this description. The parent or the subsidiary may want coverage to protect operations if that person is lost.<\/p>\n

Nischay Rawal is the responsible licensed insurance agent on this page. Insurance is offered by the licensed agent, separately from the firm’s accounting practice.<\/p>\n\n

\n

If a transferee has just taken over your US subsidiary, you don't have to work out how the company is protected alone. Contact us for a coverage review to protect your loved ones and your business. 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\n
\"A<\/figure>\n

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

Every key person policy has three roles. The insured is the executive whose life is covered. The owner is the party that controls the policy. The beneficiary is the party that receives the death benefit. In most key person cases, the company is both the owner and the beneficiary.<\/p>\n

Confirm these items before you apply:<\/p>\n