small business owners coverage calculator
Your pay, your loans, your work plan. See the gap in 30 seconds.
OpenIf you die on the job
What workers comp, work plans and Social Security pay, and what they don't.
OpenWhy it matters
Owners who set their own pay are left out of BLS counts of workers with job benefits. Any life insurance is up to you.
Life insurance can help your family and your business. Key person coverage can give the business cash if a key person dies. Banks often ask for it before a loan.
- The Insurance Information Institute says key person insurance gives the business cash if a key employee dies. Most banks and lenders require it when you apply for financing.
- BLS benefit counts leave out the self employed and owners who set their own pay.
What an insurer may ask you
Have these ready. Being honest up front gets you a real price and avoids problems at claim time.
- What your business does
- Your yearly income and the business value
- Any business loans
- Partners and any buy and sell plan
- Your age, health, and tobacco use
Common questions
Do business owners get life insurance through work?
Not unless they buy it. You are the one who sets up benefits.
What is key person insurance?
The business owns a policy on someone it cannot run without. If that person dies, the business gets cash.
Will my bank ask for life insurance?
It might. The Insurance Information Institute says most banks and lenders require key person coverage for financing.
Can life insurance help with a partner buyout?
Yes. Key person money can be used to buy out a partner's share from their heirs.
