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Key Person Insurance

What is Key Person Insurance

Key Person Insurance is a life insurance policy that is purchased by a business on the life of an owner, executive, partner, or other employee who is considered indispensable to the company and would create a financial burden in the event of their death. With this type of Insurance, the company owns the policy and is the beneficiary. The company receives a lump sum payment in the event of the insured employee’s death. These types of policies are typically reserved for people who the company could not function without, we would not put key person insurance on every employee.

Purpose of Key Person Insurance

In the event of the death of a key person in a company, the insurance would pay a lump sum benefit and then that money can be used to cover the losses incurred while trying to fund a replacement for that Person. This means the money can be used for wages, recruitment, incentives, to offset lost income, or anything else the company deems necessary.


Just like when you are buying an insurance policy for yourself, it is important to have your advisor shop around for the best policy. We normally shop the market and show you what we believe are the three best options. These typically include the two cheapest policies, and a policy from a company with a great reputation for paying claims quickly. Price can vary depending on insurance amount, health of the insured person or people, and company you wish to place your policy with.

If your business needs Key Person Insurance, please do not hesitate to contact us today for a no fee no obligation quote and 3 plan comparison.

Authorized distributor for The Canada Life Assurance Company, Equitable Life Insurance Company, The Manufacturers Life Insurance Company, Pacific Blue Cross, Sunlife and Benecaid. Manulife & Stylized M Design, and Stylized M Design are trademarks of The Manufacturers Life Insurance Company and are used by it, and by its affiliates under license.



Advantage Pacific Benefits Consultants specialize in setting up and managing high quality, cost effective, sustainable Group Benefits Plans and Group RRSPs for businesses of all sizes in all sectors.

We also provide administrative services to all our clients at no extra cost, these services include processing new member enrollments, member terminations, beneficiary designations, maintaining all member files, and being available to all plan members to answer questions and help with claims submissions.

We also have internal insurance experts and strategic partnerships with independent portfolio managers to meet any person or businesses need for Investments, Life/Critical Illness/Disability, or Business Overhead Insurance.


Phone: 778-349-8774

[email protected]

1244 4th Ave,
Prince George, BC, V2L 3J4

Monday – Friday: 8:30 AM – 4:00 PM
Saturday: By Appointment
Sunday: Closed
After Hours Appointments Available by Request

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