how much key person insurance do you need 
the amount of key person insurance needed for a business will vary depending on the business and the type of role the key person plays purchasing key person insurance that is eight to 10 times the key person s salary is often recommended or the monetary value of the key person the latter option can be difficult to value but methods include the amount of revenues profits associated with the key person or the costs required to replace the key person which includes recruitment training and the loss of revenue in the time it takes to replace the individual who pays for key person insurance the company that purchases the key person insurance is the entity that pays the premiums for the insurance the key person does not pay the insurance the bottom linekey person insurance allows a company to continue to operate in the event of the loss of an individual critical to the success of the business the death benefit to the company can cover a variety of costs to ensure the business can survive the sudden loss of its key person choosing the right key person insurance the amount of the policy and other details is particularly important for small businesses and new startups 