Keyman Insurance Policies Texas

What Do You Know About Key Man Policy Insurance?

For many small businesses, the key man policy is an important type of insurance to have in place. This ensures that if something happens to the key person or persons in the company, the business can continue to operate.


A key person policy is a life insurance policy taken out by a company on the life of an employee. Several small and medium-sized businesses rely heavily on a couple of key people. It can impact employee morale as well as monetary impact. Principal staff includes owner, business partner, and executive team.

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Every business has a key person who brings profit and success to the business table. And when such keyman makes an exit from the company, you company can see huge credit crunch. So, what can be the best way to protect the business beforehand from the unpredicted future?

Here comes the Texas key person insurance which safeguards the company’s interest by providing the financial backbone in the event of critical employee’s death and illness. To receive key man insurance quotes, you can communicate with Texas Life Insurance Company.

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Texas key person life insurance

Key Person Life Insurance Protects Your Business

Skilled employees are tremendous assets whom a company never wants to replace but some untimely event such as death or disability could leave the company devastated state where it becomes difficult for the business owners to stay in business.

Also known as “corporate-owned life insurance” or “Key Employee Insurance” bought by the company's owners on behalf of key partner to protect the company from going down the tubes. Although, it seems mean to prepare for someone's death but just like our family, business too need protection and financial support to maintain its continuity. There are many top insurance agents Texas whom you can contact for buying the key man insurance.

key person life insurance Texas

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It would be risky as well difficult for the layman to find the right life insurance policy if you want to secure your business. A Texas life insurance agencyis one of the fastest growing financial solutions where you can meet with the talented and robust team to solve your financial queries.

So far, we have delivered affordable and the best business life insurance plans to the number of customers based on their financial situation, needs and budget. Our keyman insurance benefits with multiple coverage:

  • Disability insurance

  • Tax-free coverage.

  • Death payout for business expansion.

  • Ability to buyout the ownership of the company.

  • You can pay daily expenses.

  • Secure the future of your family.

  • Spend death benefits in business expensed, debts, hiring and training of new replacement.

For us, life matter the most, therefore we are available with key man life insurance with different sort of coverage upon death of key person. To reach our financial solutions, you can send a quote or can call us directly.

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key man life insurance Texas

Key Man Insurance Policy Costs & Limitations

You can ask for an expert key man insurance quote online and get an effective cost-saving policy for you. Your keyman life insurance premium may vary depending on whether an employee is over the age of 65 or has medical issues.


Key Man's Insurance is available only in case a key employee is died or is murdered. This policy does not cover a person whose decision is based on retirement or taking a job in a similar business. You can't get workers' insurance that is essential to the business operation. It is impossible to acquire keyman life insurance for employees you use for your daily operations.

Is Key Person Insurance Policy Tax-Deductible?

According to the Internal Revenue Service (IRS) , premiums paid for a life insurance policy are not a deductible expense on a business' federal income taxes. Most commonly, a business cannot claim a premium on life and disability for a certain person. The proceeds of key persons insurance will not be taxed if the insured approves of purchasing and submits a Form 8925 to the Internal Revenue Service.

Tax Treatment for Employees Insured with Key Man Life Insurance Policies

Employees who are insured by a single company will not have tax liabilities as long as they have sole ownership or beneficiaries. In the case of keyman policy transfers, employees may be subjected to tax liabilities. Insurance is considered compensation by the tax authorities upon transfers.

On Whom You Can Buy Life Insurance Policy For Getting Keyman Benefits?

Almost every company possesses few vital people whose contribution resulted into the expansion of business. So these skilled labors whose loss can be detrimental to the company are considered as key person. 

When these critical or key players leave the company because of death, illness or disability, your company might suffer from serious financial consequences such as, diminished earnings, a loss of credit, rise in debts and failure in delivery of products and services.

best keyman policies Texas

  • Business owners

  • Director of a company

  • Spouse

  • Key sale people.

  • Creative and Skilled people.

So it’s worth to place affordable dollars on a key employee to secure the future of the company!


Visit our TX life insurance company for the keyman insurance policy Texas.

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Is Key Person Life insurance the Same as Standard Life Insurance?

Standard life insurance covers personal protection. In the event an individual dies, he or she will be entitled to compensation to cover funeral expenses, lost wages and financial stability. Person to person insurance is primarily intended for businesses. It covers only key personnel essential to the company's operations.

Get Key Man Disability Insurance in Texas 

Key man disability insurance is a type of business insurance that provides protection to a company in the event that a key employee becomes disabled and is unable to work.


The purpose of key man disability insurance is to financially protect the company in the event that a key employee is unable to work due to a disabling injury or illness. This type of insurance can help to keep the company afloat during a difficult time.


Key person disability insurance Texas is typically purchased by the company, and the benefits are paid to the company in the event that the key employee is unable to work. The company can then use the benefits to help cover the cost of replacement workers, lost productivity, and other expenses.

How Much Coverage is Necessary to Get Insurance for Key Employees?

There's no set formula for deciding the monetary value of your key person insurance. The amount of coverage that is necessary to insure a key person will vary depending on the specific needs of the company. Some factors that will affect the amount of coverage that is necessary include the size of the company, the percentage of the key person's contribution to the company's bottom line, and the financial stability of the company. The money can be used to help a business replace lost revenue as they search for a replacement.

To be Eligible For Coverage, The Employee Must Meet Certain Criteria

Keyman are the gems that maintain the shine of a company. Fewer than 15% of companies are prepared to deal with the loss of key personnel, according to recent studies. That's where key man life insurance comes in. Now have a glance on the eligibility you should have for buying key man insurance policies:

  1. The key person should not have own more than 51% ownership in the company.

  2. The key person should be critical for the business that his/her leaves the company devastated. 

  3. Total shares of the key employee including family should not be more than 71%.

Key man life insurance policy Texas differs from other life insurance policies in that the business is both the owner and the beneficiary of the policy. The key person essentially has no active participation in the policy. However, the business is legally required to notify the insured employee of its intent to purchase the coverage, provide them with details of the policy, and obtain their consent.


Have any question? Find few answers below

Frequently Asked Questions

Can I buy key person life insurance Texas if my company is in loss?

Can I buy key person life insurance Texas if my company is in loss?

Companies that are already struggling in financial strain are unable to buy keyman policies.

Would the policy be canceled if the keyman who has been insured quits?

Would the policy be canceled if the keyman who has been insured quits? 

If an insured leaves the company, then the employer either assigns the policy to the key employee name or can stop paying the premiums. Also if the company wants to transfer the keyman insurance policy to new employer, they can

Is Keyman insurance able to offer unit-linked plans?

Is Keyman insurance able to offer unit-linked plans? 

No, Keyman insurance is eligible for only term life insurance plan.

What does a key person insurance policy pay for?

What does a key person insurance policy pay for?

Key people insurance is the type of business insurance that helps companies cover losses due to the deaths of the owner, partner or essential employee who has died. Key employee life insurance helps businesses protect their employees, while locating and training replacement employees.

Who needs key employee insurance?

Who needs key employee insurance?

Key people policies are life insurance plans purchased by businesses to protect a senior leader or other important employee. Key man insurance policy is needed if the person dies a devastating blow for the company’s future. For a startup the key person is usually the owner or the company's founder.

Does Your Business need key man life insurance Texas?

Does Your Business need key man life insurance Texas?

Is your company's reputation tied to one person's name? Is your company's brand directly related to an employee? If yes, then you must need key insurance from a reputed key insurance company.

What do you know about permanent life policy?

What do you know about permanent life policy?

Permanent life insurance provides lifelong coverage & a portion of permanent life insurance premiums are added to a cash value account which grows in value over time.

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