It’s life insurance that the business owns, pays for and receives the benefit from, on the life of an owner or a key person. Businesses use it to replace a key person, fund a buy-sell agreement, repay a loan or pass on wealth, and a permanent policy can be used as collateral for a loan. It does a different job from life insurance you own personally, which protects your family.
What is business-owned life insurance?
Reviewed by Garrett Agencies Ltd., October 2026. How we write
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More about business-owned life insurance
Life insurance held by the corporation, for funding obligations and planning ahead.
More questions about business-owned life insurance
- Who should be covered by business-owned life insurance?
- What are the differences between term and permanent business-owned life insurance?
- How much business-owned life insurance coverage do I need?
- What are the tax implications of business-owned life insurance?
- What happens to a business-owned life insurance policy if a key person leaves the company?
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