Should I Consider Buying Key-Person Insurance?

Key-person insurance is a life insurance policy taken out on the owner of the business or the key person behind the business, in the event this individual dies. In a small business, which is closely run by one person or a few key people, this type of insurance may be worthwhile.

You might want to get this type of insurance before seeking funding. Venture capitalists will want assurance that they can recoup their losses if something happens to the company's founder.