Key person and buy-sell insurance in South Carolina to keep business running

Why Continuity Coverage Matters

Protect revenue, payroll, and ownership transitions
Every thriving Greenville business relies on a few difference-makers—founders, top sales leaders, lead engineers. Key person insurance provides funds if a critical employee dies, helping cover recruiting, debt service, and lost income. Buy-sell insurance funds an ownership transfer under a partnership agreement so heirs receive value and the business gains stability. These solutions are powered by life insurance customized to your structure.

How Key Person Insurance Works

Life and disability protection for essential roles

The business is owner and beneficiary of a policy on the key employee or owner. Proceeds can offset revenue loss, pay lenders, and finance replacement costs. Add key person disability options to address lengthy absences from illness or injury. We’ll coordinate coverage with lenders and update amounts as your revenue grows.

Funding Your Buy-Sell Agreement

Cross-purchase or entity-purchase designs

A well-drafted buy-sell specifies how ownership transfers after death or disability. Funding it with insurance makes the plan executable, not just theoretical. Many clients choose term life insurance for cost-efficient protection over a 10-, 20-, or 30-year horizon; others blend whole life insurance for permanent needs or cash value. We’ll align coverage to your valuation method and tax advisor’s guidance.

How Much Coverage Do We Need?

Right-sizing limits to valuation and debt

Common approaches include multiples of compensation, contribution-to-profit analysis, or replacement-cost estimates—plus business debt, personal guarantees, and buy-sell valuation. We’ll document the rationale for lenders and update limits after major milestones (new product lines, acquisitions).

Process & Coordination

From plan design to policy delivery

  1. Discovery: roles, financials, lenders, and legal structure.
  2. Design: choose ownership structure, riders, and carriers.
  3. Underwriting: streamlined digital applications where available.
  4. Legal sync: we coordinate with your attorney/CPA to align policy ownership and beneficiary designations with your agreement.
  5. Reviews: annual check-ins to keep coverage current.
    (We don’t provide tax or legal advice—please consult your advisors.)

Key Person & Buy/Sell

  • What’s the difference between key person and buy-sell insurance?

    Key person benefits the company to offset operational loss. Buy-sell funds ownership transfer per an agreement. Many firms carry both.

  • Who owns and pays for the policy?

    Typically the business for key person; for buy-sell it depends on structure (cross-purchase vs entity-purchase). We’ll align to your agreement.

  • Can we insure multiple people?

    Yes. Insure founders, revenue drivers, and technical leaders—limits can vary by role and impact.

  • Is disability included?

    It can be. Disability buy-out and key person disability address long-term absence.

  • Are proceeds taxable?

    Tax treatment varies; structure correctly and consult your CPA/attorney.

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