M&T Bank : Key Person Life Insurance
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Key Person Life Insurance

Key person life insurance can help protect your company against the loss of valuable individuals.

Your business may be supported by an important individual, whether that person is the founder, a top performer or an innovative thinker. What would happen if that talent were lost? A key person life insurance policy is owned by the business to compensate the business for a financial loss due to the unexpected death or extended incapacity of a key individual named in the policy.

A key person life insurance policy may help your company stay viable if something happens to that individual. In the event of the death of a key person, a business can lose valuable clients, as replacing a key individual may take significant time, effort and funds. Key person life insurance helps cover financial losses that may occur upon the death of that person. Key features include:

  • Cash value may accumulate in the policy 
  • Policy can be transferred to the employee at retirement as a bonus
  • Premiums are paid by the business

Corporate Owned Life Insurance
Corporate owned life insurance offers employers the opportunity to protect the corporation/entity by purchasing life insurance policies on the lives of their key employees.

The types of life insurance to be considered are:

  • Whole Life: Fixed premium payments, guaranteed death benefit and cash value accumulation
  • Universal Life: Flexible premiums, adjustable death benefit and in some cases cash value accumulation
  • Variable Life: Death benefit and cash value can increase over time if underlying policy investments perform well; policy owner can choose from sub accounts that offer varying degrees of risk.

Benefits of a Corporate Owned Life Insurance Policy
Corporate owned life insurance may offer the following advantages:

  • The option to build cash value
  • Lifetime coverage which remains in force as long as premiums are paid or there is adequate value in the policy to pay the cost of insurance 
  • The younger and healthier the insured is when the policy is purchased, the lower the annual premium may be

Contact Us
Learn more about key person life insurance and corporate owned life insurance. To schedule an appointment, simply call us toll-free at 1-800-724-9949 or visit your nearest M&T branch. You can also complete a Contact Form online, and a registered representative will contact you.

Investment and Insurance Products: • Are NOT Deposits • Are NOT FDIC-Insured • Are NOT Insured
By Any Federal Government Agency • Have NO Bank Guarantee • May Go Down In Value

Brokerage services and insurance products are offered by M&T Securities, Inc. (member FINRA/SIPC), not by M&T Bank.
M&T Securities, Inc. is licensed as an insurance agent and acts as agent for insurers. Insurance policies are obligations of the insurers that issue the policies. Insurance products may not be available in all states.
The content of this page is for informational purposes only and is not intended to offer any tax, legal or financial advice. Please consult with the professionals of your choice to discuss your situation.
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