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Key person protection

Preserve the value of your business.

Planning for the unexpected can protect your business—and everyone who depends on it—when sudden challenges arise. Have you thought about the loss your business would experience if you were to lose your top talent?

What would happen to your business if:

  • An owner or key employee became too sick or hurt to work?
  • An owner or key employee died unexpectedly?
  • An owner or key employee exited the business with minimal notice?

Protection comes in many forms.

Principal® offers a variety of business protection solutions, so you can create a customized plan that best fits your business needs.

Check out a sample proposal for owners (PDF) and a sample proposal for key employees (PDF) for examples of what you could receive.

Key person insurance

Get an overview of key person insurance (PDF).

Key person replacement disability insurance

Key person replacement disability insurance provides funds for recruitment, training, temporary staffing costs, and other needs after a total disability claim.

Key person life insurance

Key person life insurance policies generally pay an income-tax-free(See details on income tax free payments) death benefit to the business to help offset the financial hardship of losing an owner or key team member.

ESOP repurchase plans

ESOP repurchase plans use life insurance to provide necessary liquidity for meeting the repurchase obligations of an employee stock ownership plan (ESOP).

Overhead expense insurance

Overhead expense (OE) insurance provides reimbursement to cover immediate overhead costs if a business owner becomes too sick or hurt to work.

Overhead expense insurance summary (PDF)

Reach out

Talk with a financial professional

If the loss of a key employee or owner would create a financial challenge that puts the business at risk, talk to your financial professional about solution options. Don’t have one? We can help.

Find a financial professional


  1. If the requirements of Internal Revenue Code Section 101(j) are not met, death proceeds from employer-owned life insurance contracts may be taxable as ordinary income in excess of cost basis. Death benefits and all life insurance guarantees are subject to the claims-paying ability of the issuing insurance company.


Disability insurance has limitations and exclusions. For cost and coverage details, contact a Principal® Representative.

Insurance products issued by Principal National Life Insurance Co. (except in NY) and Principal Life Insurance Company®. Plan administrative services provided by Principal Life. Principal Funds, Inc. is distributed by Principal Funds Distributor, Inc. Securities offered through Principal Securities, Inc., member SIPC, and/or independent broker/dealers. Referenced companies are members of the Principal Financial Group®, Des Moines, IA 50392.