Protect Your Business with the Right Life Insurance
Key Person (Key Man) coverage • Buy-Sell Agreement funding • Loan Collateral insurance — customized for your business from 50+ top carriers.
Business-owned. Business-paid. Business-beneficiary. Compare rates in 2 minutes.
Why Businesses Choose Business Life Insurance
Protection Against Financial Loss
Tax-free death benefit replaces the revenue and stability lost when a critical team member passes away unexpectedly.
Replacing Lost Revenue
Funds to recruit, hire, and train a qualified replacement — without the pressure to sell or liquidate the business.
Debt Repayment & Loan Security
Satisfies lender requirements for SBA loans, commercial mortgages, and lines of credit — keeping loans in good standing.
Business Continuity
Ensures your company survives the transition — keeping operations running, partners protected, and obligations met.
Partnership Protection
Funds a buy-sell agreement so surviving partners can purchase a deceased owner's share without financial strain.
Lender Requirement
Many commercial lenders and SBA programs require a life insurance policy as collateral — we help you meet that requirement cost-effectively.
What Is Business Life Insurance?
Business life insurance is a life insurance policy owned and paid for by your business, with the business as the sole beneficiary. Unlike personal life insurance (which protects your family), business life insurance protects your company's financial future.
It comes in three primary forms, each serving a different purpose:
- ✦Key Person (Key Man) Insurance — Protects against the financial loss of a critical employee, executive, or owner.
- ✦Buy-Sell Agreement Funding — Ensures surviving business partners have the cash to buy out a deceased owner's share.
- ✦Loan Collateral Insurance — Satisfies lender requirements for SBA loans, commercial mortgages, and business lines of credit.
The death benefit is generally received income tax-freeby the business, providing liquidity exactly when it's needed most.
Three Ways to Protect Your Business
Coverage Type 1
Key Person (Key Man) Insurance
Protect Your Most Valuable People
- ✓Replaces the financial loss of a critical employee, executive, or owner
- ✓Tax-free death benefit paid directly to the business
- ✓Funds recruitment, training, and stabilization after a loss
- ✓Policies start as low as ~$100/year for younger key employees
- ✓No-exam options available for fast issuance
Coverage Type 2
Buy-Sell Agreement Funding
Protect Your Partnership
- ✓Ensures surviving partners can buy out a deceased owner's share
- ✓Prevents the business from falling into outside hands
- ✓Provides fair compensation to the deceased partner's family
- ✓Cross-purchase and entity-purchase structures available
- ✓A standard requirement in any well-drafted partnership agreement
Coverage Type 3
Loan Collateral Insurance
Satisfy Your Lender's Requirements
- ✓Required by many commercial lenders and SBA programs
- ✓Protects the lender (and your business) if a guarantor passes away
- ✓Term coverage — the most cost-effective way to meet collateral requirements
- ✓Policy amount typically matches or exceeds the loan value
- ✓Can be assigned to the lender as collateral
Sample Annual Rates for Key Person Insurance
10-year term life, non-tobacco, excellent health. Your exact rate depends on age, health, coverage amount, and term length.
| Age | $250K Coverage | $500K Coverage | ||
|---|---|---|---|---|
| Female | Male | Female | Male | |
| 30 | $100 | $107 | $140 | $155 |
| 40 | $125 | $127 | $185 | $195 |
| 50 | $223 | $275 | $263 | $395 |
| 60 | $490 | $663 | $870 | $1,225 |
Rates shown are annual premiums. No-exam policies available at slightly higher rates. Quotes for larger amounts ($1M–$10M+) and custom terms available on request.
Who Needs Business Life Insurance?
Your Business Needs Key Person Coverage If…
- •A single employee drives a significant portion of your revenue
- •Your company relies on specialized knowledge or relationships
- •A key executive's absence would threaten operations or credit
- •You have an SBA loan or commercial debt requiring collateral
- •You employ licensed professionals (doctors, contractors, attorneys)
- •Your business is small or mid-sized and depends on a few key individuals
Your Business Needs Buy-Sell Funding If…
- •You have one or more business partners
- •Your partnership agreement lacks a funded buy-sell provision
- •You want to keep the business in friendly hands if a partner dies
- •You want to ensure fair compensation for a deceased partner's family
- •You own shares worth significant value that would be hard to liquidate
- •You're planning for business succession or retirement transition
How It Works
Getting your business covered is simpler than you think.
Tell Us About Your Business
Coverage type, key person details, amount needed. Takes about 2 minutes.
Compare Top Carrier Rates
We shop 50+ insurers to find the best rates and terms for your specific situation.
Apply & Get Covered
Seth guides you through the application. No jargon, no pressure. Policies can issue in days.
Why Choose ApplyForLife?
Years Experience
Since 1994, we've been helping businesses coast to coast find the right coverage at the right price.
Top Carriers
As an independent agency, we represent every major insurer — not just one or two. You get real choice.
States Licensed
Based in Texas. Licensed coast to coast. We can help your business no matter where you operate.
“I've spent 30+ years helping business owners protect what they've built. Whether you need key person coverage, a buy-sell funded with life insurance, or loan collateral to satisfy a lender — I'll find you the best option and walk you through every step.”
— Seth Legatowicz, SJL Insurance Agency
Frequently Asked Questions
What's the difference between Key Man, Buy-Sell, and Loan Collateral insurance?+
Key Man (Key Person) insurance protects your business from financial loss if a critical employee dies or becomes disabled. Buy-Sell insurance funds a partnership agreement so surviving owners can buy out a deceased partner's share. Loan Collateral insurance satisfies a lender's requirement to secure business debt. All three are typically term life policies owned and paid for by the business.
Who pays the premiums on a key person policy?+
The business pays the premiums, owns the policy, and is the sole beneficiary. The premium is typically not tax-deductible, but the death benefit is received income tax-free.
How much key person coverage does my business need?+
A common rule of thumb is 5–10× the key person's annual compensation. More precise methods include replacement cost (hiring and training), contribution to revenue (what percentage of revenue they drive), and the multiples-of-income approach. We'll walk you through the right calculation for your situation.
Can I get coverage without a medical exam?+
Yes — many carriers offer no-exam policies up to $500K or more, depending on age and health. These policies cost slightly more but can be issued in days instead of weeks. For larger amounts ($1M+), a paramedical exam is typically required but we handle everything.
Do I need key person insurance if I'm a sole proprietor?+
It depends. If your business relies on your personal expertise, licenses, or relationships — and would struggle to operate without you — key person coverage makes sense. It can also fund a succession plan or satisfy a lender's collateral requirement on your business loan.
How long does it take to set up a business life insurance policy?+
A no-exam policy can be issued in as little as 2–3 business days. Policies with a paramedical exam typically take 2–4 weeks from application to approval. We'll guide you through every step.
Ready to Protect Your Business?
No obligation. No pressure. Just straight answers and the best rates from 50+ carriers. Seth will personally guide you through the process.
Get Your Free Business QuoteQuestions? Call 214-272-2769