Kentucky Key Person Insurance

When you need a knowledgeable adviser

Written by Candace Jenkins
Written by Candace Jenkins

Candace Jenkins is a licensed insurance advisor with over a decade of experience. She is also a writer and loves to write on all things insurance. Candace writes for on a continuous basis and is here with the facts about all your insurance inquiries.

Reviewer: Jeffrey Green Reviewed by Jeffrey Green
Reviewer: Jeffrey Green
Reviewed by Jeffrey Green

Jeff Green has held a variety of sales and management roles at life insurance companies, Wall street firms, and distribution organizations over his 40-year career.  He was previously Finra 7,24,66 registered and held life insurance licenses in multiple states. He is a graduate of Stony Brook University.

Kentucky Key Person Insurance

There are approximately 702,054 people who work for small business owners in Kentucky. If your business operates off of a few key employees or executives, you'll want protection for the worst. Key person insurance can save your company from a significant loss.

An independent insurance agent will help find a policy for an affordable price. Since they do the shopping on your behalf, you can relax. Connect with a local expert to get the best deal in town. 

What Is Key Person Insurance?

Key person coverage is a life insurance policy that can be bought for a key team member or executive's life. As the business owner, you would be responsible for the policy's premiums. The company would be listed as the beneficiary and receive any benefits. This coverage will help pay for all the business expenses that occur when a key person becomes deceased.

What Does Key Person Insurance Cover?

Not all key person insurance is the same and can come with a variety of coverages. Each carrier has its own spin on offerings, and some may fit your needs while others will not. Check out what a key person insurance policy can cover.

  • Insurance to replace profits associated with a key person
  • Offsetting lost income from sales due to a key person
  • Protection for shareholders and other interests
  • Cover losses resulting from a business project involving a key person

What Is the Purpose of Key Person Insurance?

Ask yourself how your Kentucky business would function without a key team member to help run the show? It may not be pleasant to imagine, but it's crucial to be proactive in your business insurance. To have coverage for every loss, even death, you'll want to review your current policies for accuracy. 

Key person insurance can help pay debts and employee severances in the event of a closure. It can be there to secure the final stages of an operation. While shutting the doors is the last resort, it should be planned to avoid judgments or bankruptcy. 

What Does Key Person Insurance Not Cover?

Since key person insurance is a life insurance policy, it works the same way as personal life coverage. It's important to remember that each life insurance policy will be different. Your Kentucky key person insurance may exclude the following coverages.

This list of exclusions isn't the same for every carrier. Some companies may include coverage for long-term care and disability on their key person policies. The difference will be set from carrier to carrier and should be reviewed.

Key Person Insurance Cost

Every business insurance policy will have unique risks. The cost of your key person insurance will vary. Coverage depends on a list of criteria from the insurance companies. Take a look at some factors carriers use to rate your policy.

  • The key person's health history
  • The key person's current health status
  • The limits of protection you choose
  • If the key person has any current life policies
  • How long the key person has worked for your company
  • What the key person's role is at your company

While there is no way to get exact pricing without first obtaining quotes, you can be aware of how it's figured. Personal data and outside factors are utilized when rating your coverage. For accuracy, get pricing from multiple markets.

How to Connect with a Kentucky Independent Agent

When you're looking for key person insurance in Kentucky, coverage can be confusing. If you're not a licensed professional, you might not know where to start. The wrong policy could put you into financial devastation fast. 

Fortunately, an independent insurance agent can help with policy and premium options. Since they have access to several carriers, you'll get the best pricing around. Connect with a local expert on for custom quotes today.

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