How the Rich Use Insurance to Protect & Grow Their Wealth

High-Net-Worth Insurance Strategies

High-net-worth individuals (HNWIs) employ significantly different insurance strategies compared to the average person. While the average individual focuses primarily on liability and property protection, HNWIs leverage insurance as a sophisticated tool for wealth preservation, tax optimization, and estate planning. Their strategies are more complex, involving larger sums insured, specialized products, and a greater emphasis on proactive risk management.

The core difference lies in the scale and scope of assets needing protection. An average individual might insure their home and car; an HNWI might need coverage for multiple properties, valuable art collections, private jets, and complex business interests. This necessitates a more tailored and comprehensive approach to insurance.

Specialized Insurance Products for Asset Protection

High-net-worth individuals often utilize specialized insurance products beyond standard homeowner’s or auto insurance. These products are designed to address the unique risks and vulnerabilities associated with significant wealth.

For instance, collectibles insurance protects valuable art, antiques, jewelry, and other prized possessions against loss or damage. Such policies often feature appraisal services and specialized restoration coverage. Another example is kidnap and ransom insurance, which covers expenses related to hostage situations. This is a crucial consideration for individuals with high public profiles or those traveling to high-risk areas. Personal liability umbrella policies provide extensive liability coverage exceeding the limits of underlying policies, protecting against significant lawsuits stemming from accidents or other incidents. Finally, cybersecurity insurance has become increasingly important for HNWIs, covering losses related to data breaches, identity theft, and other cyber-related risks. These policies often include incident response services and legal assistance.

Tax Implications and Benefits of Insurance Strategies for Wealth Preservation

Insurance strategies play a significant role in wealth preservation for HNWIs, offering various tax advantages. For example, life insurance policies can provide significant death benefit tax advantages, allowing for estate tax mitigation and ensuring a smooth transfer of wealth to heirs. The death benefit is typically received tax-free by the beneficiaries, depending on the policy structure and applicable regulations. Moreover, certain types of life insurance policies, such as irrevocable life insurance trusts (ILITs), can further enhance estate tax planning by removing the policy’s death benefit from the insured’s estate. This complex strategy requires careful planning and consultation with tax and legal professionals.

Another tax-efficient strategy involves using insurance to protect business interests. Key person insurance, for example, protects a business from financial losses resulting from the death or disability of a key employee. The death benefit can be used to replace the lost income or cover the costs of finding and training a replacement. The premiums paid for such policies might be tax-deductible, depending on the specific circumstances and applicable tax laws. It is important to note that tax laws vary by jurisdiction, and professional advice is crucial to ensure compliance and maximize tax benefits.

Life Insurance and Estate Planning

Life insurance plays a crucial role in comprehensive estate planning, particularly for high-net-worth individuals. It offers a powerful tool to mitigate estate taxes, preserve family wealth, and ensure a smooth transition of assets to beneficiaries. Understanding the different types of policies and their implications is essential for developing a robust strategy.

Life Insurance and Estate Tax Minimization

High net worth estates often face significant estate taxes. Life insurance proceeds, paid out upon the death of the insured, are generally excluded from the taxable estate. This exclusion allows the family to receive a substantial sum of money free from immediate tax liabilities, preserving a larger portion of the overall wealth. Strategic use of life insurance can significantly reduce the tax burden, allowing more assets to be passed on to heirs. For example, a $10 million estate facing a 40% estate tax would owe $4 million in taxes. If $4 million of that estate were in the form of life insurance proceeds, the estate tax liability would be reduced to zero, leaving the entire $10 million available to beneficiaries. The precise tax implications will vary depending on the specific jurisdiction and the overall composition of the estate.

Comparison of Life Insurance Policies for High-Net-Worth Individuals

Several types of life insurance policies cater to the specific needs of high-net-worth individuals. Each policy offers different features regarding premium payments, cash value accumulation, and death benefits.

Whole Life Insurance: Whole life insurance provides permanent coverage with a fixed premium and a cash value component that grows tax-deferred. The cash value can be borrowed against or withdrawn, offering flexibility. However, premiums are typically higher than term life insurance.

Universal Life Insurance: Universal life insurance also offers permanent coverage, but with more flexible premium payments and death benefit adjustments. The cash value grows based on the policy’s interest rate, which can fluctuate. This flexibility allows for adjustments based on changing financial circumstances.

Variable Life Insurance: Variable life insurance invests the cash value component in various sub-accounts, similar to mutual funds. The growth potential is higher than with whole or universal life, but it also carries more investment risk. The death benefit fluctuates with the performance of the underlying investments.

Hypothetical Estate Plan Incorporating Life Insurance

Consider a family with a $20 million estate consisting of real estate, investments, and a successful business. To minimize estate taxes and ensure a smooth transition of assets, a comprehensive estate plan might include the following:

A $10 million whole life insurance policy on the primary breadwinner. This would provide a significant tax-free death benefit to cover potential estate taxes and provide liquidity for the family. The cash value component could be used for long-term care expenses or other needs during the insured’s lifetime.

Smaller universal life policies on other family members, providing additional death benefits and flexibility in premium payments. These policies could be adjusted based on individual needs and changing circumstances.

Irrevocable Life Insurance Trusts (ILITs) to further protect the life insurance proceeds from estate taxes and creditors. This adds a layer of complexity but provides strong asset protection.

Benefits: This plan minimizes estate taxes, provides liquidity for the family, and offers flexibility in managing assets. It also provides a sense of security and financial stability for the family’s future.

Risks: The plan involves significant premium costs. The performance of variable life insurance policies is subject to market fluctuations. Complex tax laws necessitate professional advice to ensure the plan remains compliant and effective.

Protecting High-Value Assets

High-net-worth individuals often possess assets far exceeding the coverage limits of standard insurance policies. Protecting these unique and valuable possessions requires specialized insurance solutions tailored to their specific needs and risks. This section will explore the intricacies of insuring high-value assets, focusing on the unique challenges and solutions involved.

Protecting assets like art collections, private jets, and luxury real estate necessitates a deeper understanding of the risks involved and the specific coverage required. These assets often require specialized appraisals, intricate valuation methods, and comprehensive insurance policies that go beyond standard homeowner’s or auto insurance. Furthermore, the claims process for these assets can be significantly more complex, involving detailed documentation, expert assessments, and potentially lengthy negotiations.

Insuring Art Collections

Insuring an art collection presents unique challenges. The value of artwork can fluctuate significantly based on market trends and the artist’s reputation. Therefore, regular professional appraisals are crucial to accurately reflect the current value of the collection for insurance purposes. Policies often include coverage for damage, theft, loss, and even damage during transportation. Furthermore, specific clauses might address issues like authenticity verification and restoration costs. The claims process often involves detailed documentation, including provenance records and photographic evidence. The insurer may require the involvement of art experts to assess the damage and determine the appropriate compensation.

Insuring Private Jets

Private jet insurance is a specialized field requiring comprehensive risk assessment. Factors such as the aircraft’s age, model, maintenance records, and the pilot’s experience all influence the premium. Coverage typically includes hull insurance (damage to the aircraft itself), liability insurance (covering third-party damage or injury), and passenger liability insurance. Due to the high value of private jets and the potential for significant losses, insurance policies often come with stringent safety requirements and pilot training stipulations. The claims process for a damaged private jet can be extensive, involving investigations by aviation experts and potentially lengthy repairs.

Insuring Luxury Real Estate

Insuring luxury real estate requires more than a standard homeowner’s policy. These policies often include higher coverage limits to account for the property’s significant value and may include additional coverage for valuable contents, personal liability, and specific perils such as flooding or earthquakes. Accurate valuations are crucial, often requiring professional appraisals that consider factors beyond the property’s square footage, such as location, amenities, and architectural significance. Claims processes can be intricate, involving detailed documentation of damage, expert assessments, and potentially lengthy negotiations with insurers.

Cost and Benefit Comparison of High-Value Asset Insurance

The cost and benefits of insuring high-value assets vary significantly depending on the asset type, its value, the level of coverage, and the insurer. The following table provides a general comparison:

Asset Type	Cost (Approximate Annual Premium as % of Asset Value)	Benefits	Considerations
Art Collection	0.5% – 2%	Protection against theft, damage, loss; coverage for restoration; potential increase in asset value due to insurance.	Requires regular professional appraisals; complex claims process.
Private Jet	1% – 5%	Comprehensive coverage for hull, liability, and passenger liability; peace of mind during travel.	Stringent safety requirements; high premiums; complex claims process.
Luxury Real Estate	0.2% – 1%	High coverage limits; protection against various perils; coverage for valuable contents; potential for enhanced security measures.	Requires professional appraisal; potential for higher deductibles; complex claims process.

Liability and Risk Management

High-net-worth individuals face a unique set of liability risks, often exceeding those of the average person. Their increased wealth, prominent social standing, and ownership of valuable assets create a larger target for potential lawsuits and claims. Effective liability management through comprehensive insurance strategies is therefore crucial to protecting their financial well-being and ensuring peace of mind. This section will explore various liability risks and the insurance solutions available to mitigate them.

Protecting high-net-worth individuals from substantial financial losses resulting from liability claims is paramount. The consequences of a significant lawsuit, regardless of fault, can be devastating, potentially impacting not only current assets but also future wealth accumulation. Understanding the specific liability exposures and implementing appropriate insurance strategies are proactive steps in preserving and growing wealth.

Umbrella Liability Insurance for High-Net-Worth Individuals

Umbrella liability insurance provides an additional layer of protection above and beyond the liability coverage offered by standard homeowners, auto, and other policies. For high-net-worth individuals, this is particularly crucial because the limits on standard policies are often insufficient to cover the potential costs associated with significant liability claims. An umbrella policy acts as a safety net, extending coverage to a much higher limit, typically millions of dollars, providing essential financial protection against catastrophic liability events. The relatively low cost of an umbrella policy compared to the potential financial exposure makes it a highly effective risk management tool.

Potential Liability Scenarios and Corresponding Insurance Coverage Options

Understanding potential liability scenarios is key to selecting appropriate insurance coverage. High-net-worth individuals often face unique risks due to their lifestyle and assets.

• Scenario: A guest is injured on your property. Coverage: Homeowners liability insurance, supplemented by an umbrella liability policy. This covers medical expenses, legal fees, and potential settlements arising from accidents occurring on the insured property.
• Scenario: You are involved in a car accident causing significant damage and injuries. Coverage: Auto liability insurance, supplemented by an umbrella liability policy. This covers damages to other vehicles and property, as well as medical expenses and legal fees for injured parties. High limits are particularly important in cases involving serious injuries or multiple parties.
• Scenario: A lawsuit is filed against you for defamation or libel. Coverage: Personal liability umbrella policy. This can cover legal fees and potential settlements resulting from claims of defamation, libel, or slander. This is crucial for high-profile individuals who may be more vulnerable to such claims.
• Scenario: An employee is injured on the job. Coverage: Workers’ compensation insurance. This is a mandatory insurance in many jurisdictions, covering medical expenses and lost wages for employees injured on the job. For high-net-worth individuals who own businesses, this is essential to protect against potentially significant liability.
• Scenario: Your dog bites a neighbor. Coverage: Homeowners liability insurance, possibly supplemented by an umbrella policy depending on the severity of the injury and the associated costs. This covers medical expenses for the bite victim and potential legal fees.
• Scenario: You are sued for personal injury due to an activity on your property, such as a swimming pool accident. Coverage: Homeowners liability insurance, supplemented by an umbrella policy. The umbrella policy is crucial to handle high costs related to severe injuries or substantial legal fees.

Business Ownership and Insurance

For high-net-worth individuals, a significant portion of their wealth is often tied up in their businesses. Protecting this asset requires a sophisticated approach to insurance, going beyond the standard policies often sufficient for smaller enterprises. Strategic insurance planning can safeguard against unforeseen circumstances, preserving both the financial value and operational continuity of the business.

Protecting the wealth invested in a business involves mitigating various risks, from unexpected events impacting operations to potential liabilities. The right insurance strategy ensures that the business remains viable and valuable, protecting the owner’s substantial investment and future returns. This proactive approach is crucial for maintaining long-term financial stability and preserving the legacy of the business.

Key Person Insurance

Key person insurance protects a business from the financial consequences of the loss of a crucial employee, typically an owner or a senior executive whose expertise and contributions are vital to the company’s success. This type of life insurance policy provides a lump-sum payment upon the death or total disability of the insured individual. The payout can then be used to cover expenses such as recruiting and training a replacement, covering lost revenue during the transition, or maintaining ongoing operational costs. For example, a family-owned manufacturing company might insure the CEO, whose unique expertise is critical to the company’s success. The death benefit would allow the company to hire a consultant or temporary replacement while searching for a permanent successor, mitigating the immediate financial impact of the CEO’s loss.

Business Interruption Insurance

Business interruption insurance compensates a business for lost income and expenses incurred due to unforeseen events that disrupt operations. These events can range from natural disasters (such as hurricanes or floods) to fires, power outages, or even cyberattacks. The policy covers continuing expenses such as rent, salaries, and loan payments even when the business is unable to generate revenue. For instance, a high-end boutique hotel facing a major water pipe burst resulting in closure for repairs would be covered for lost revenue and ongoing operating costs during the downtime, allowing the business to recover and reopen without significant financial strain. This helps to maintain the value of the business and prevent permanent closure.

Directors and Officers Liability Insurance

This insurance protects company directors and officers from lawsuits alleging mismanagement, negligence, or breach of fiduciary duty. The costs associated with defending against such lawsuits can be substantial, and this policy covers legal fees, settlements, and judgments. A significant lawsuit could severely impact a high-net-worth individual’s personal assets if they are personally liable. This type of insurance acts as a crucial shield, protecting both the individual and the business from potentially devastating financial repercussions. For example, a lawsuit alleging insider trading against the board of directors of a publicly traded company could result in significant legal costs and potential financial penalties; D&O insurance would cover these expenses, protecting the directors and the company’s assets.

International Insurance and Asset Protection

High-net-worth individuals often hold assets in multiple jurisdictions, necessitating a sophisticated approach to insurance and asset protection that transcends national borders. This requires careful consideration of diverse legal systems, regulatory environments, and potential political risks. Effective strategies involve understanding the intricacies of international insurance markets and employing proactive measures to safeguard wealth across geographical boundaries.

International insurance presents complexities stemming from differing legal frameworks governing insurance contracts, claims processes, and regulatory oversight. The enforceability of insurance policies can vary significantly across jurisdictions, impacting the effectiveness of asset protection strategies. Furthermore, political instability, currency fluctuations, and tax implications in different countries add layers of complexity to the management of international insurance portfolios. Understanding these nuances is critical for successful asset protection.

Jurisdictional Differences in Insurance Coverage and Enforceability

Insurance policies purchased in one country may not offer the same level of coverage or enforceability in another. For instance, a liability policy issued in the United States might not fully protect an individual’s assets in a legal dispute in a country with different tort laws. Similarly, the process of filing a claim and obtaining compensation can vary considerably depending on the jurisdiction. Therefore, careful due diligence is required to ensure adequate coverage and enforceability across all relevant jurisdictions. This often involves consulting with legal and insurance professionals with expertise in international law and insurance. For example, a high-net-worth individual owning property in both the US and the UK needs to ensure their insurance policies comply with and are enforceable under the laws of both countries. Failure to do so could leave significant assets vulnerable.

Strategies for Mitigating Political and Legal Risks

Protecting assets from political and legal risks in different countries often involves a multi-pronged approach. This may include diversifying assets across multiple jurisdictions, strategically structuring investments to minimize exposure to specific risks, and utilizing specialized insurance products designed to cover political risks, such as expropriation or nationalization. Furthermore, engaging legal counsel with expertise in international law is crucial for navigating complex legal landscapes and ensuring compliance with relevant regulations. A well-structured trust, established in a jurisdiction with robust asset protection laws, can also provide a layer of protection against legal challenges and political instability. For instance, a family with significant holdings in a politically volatile region might establish a trust in a more stable jurisdiction to shield assets from potential confiscation or other political risks.

Offshore Insurance Products: Advantages and Disadvantages

Offshore insurance products, such as international life insurance policies or captive insurance companies, offer certain advantages for asset protection. These may include greater confidentiality, potentially lower tax burdens, and stronger asset protection features compared to domestic options. However, there are also disadvantages to consider. These include potential regulatory challenges, complexities in managing offshore policies, and the possibility of higher costs. Furthermore, the legal and regulatory landscape surrounding offshore insurance is constantly evolving, requiring ongoing vigilance and professional guidance. For example, an offshore life insurance policy might offer significant tax advantages, but it requires meticulous planning to ensure compliance with both domestic and international tax regulations. The potential benefits must be carefully weighed against the complexities and potential risks involved.

The Role of Insurance Advisors

High-net-worth individuals require specialized guidance to navigate the complex world of insurance. These individuals often possess unique asset structures and risk profiles demanding sophisticated strategies beyond standard insurance policies. This is where the expertise of a dedicated insurance advisor becomes invaluable.

Insurance advisors specializing in high-net-worth clients possess a deep understanding of various insurance products, tax implications, and estate planning strategies. They go beyond simply selling policies; they act as strategic partners, helping clients identify and mitigate risks, optimize their financial portfolios, and achieve their long-term financial goals. Their services extend to comprehensive financial planning, incorporating insurance as a crucial component of a broader wealth management strategy.

Expertise and Services of High-Net-Worth Insurance Advisors

High-net-worth insurance advisors offer a range of specialized services tailored to the unique needs of their clientele. These services extend beyond the typical insurance agent’s role, encompassing comprehensive financial planning and sophisticated risk management techniques. Their expertise ensures clients receive personalized solutions that align with their individual circumstances and financial objectives.

Navigating Complex Insurance Policies and Strategies

The complexity of high-net-worth insurance products often necessitates expert guidance. Advisors simplify intricate policy details, explain complex terminology, and provide clear, concise explanations of coverage, benefits, and limitations. They help clients understand the nuances of various insurance types, such as life insurance, disability insurance, long-term care insurance, and property and casualty insurance, enabling informed decision-making. They also help clients compare policies from different insurers to identify the most suitable options based on their specific needs and risk profiles. This process ensures clients avoid costly mistakes and obtain optimal coverage.

Adding Value Beyond Policy Sales

High-net-worth insurance advisors add significant value beyond simply selling insurance policies. They provide ongoing support and guidance, regularly reviewing policies to ensure they remain aligned with the client’s evolving needs and financial situation. They act as a trusted resource, providing proactive advice and responding to any questions or concerns that arise. For example, an advisor might identify a potential tax advantage through a specific life insurance strategy or recommend adjustments to a client’s estate plan to optimize wealth transfer. Their proactive approach ensures clients are well-protected and their financial goals are effectively managed. Another example would be assisting with claims processes, advocating on behalf of the client to ensure fair and prompt settlements. This level of personalized service is invaluable to high-net-worth individuals who require proactive and strategic financial management.

Insurance and Wealth Growth Strategies

Insurance, often viewed as a protective measure against financial loss, can also be a powerful tool for wealth accumulation and growth. By strategically utilizing various insurance products, high-net-worth individuals can leverage their financial resources to achieve long-term financial goals beyond simply mitigating risk. This involves understanding how insurance can be used not just as a shield, but as a springboard for wealth creation.

Insurance products can be leveraged to fund investments or generate income in several ways. This goes beyond simply collecting a death benefit; it’s about actively using insurance as a component of a broader financial strategy.

Using Life Insurance for Investment Purposes

Life insurance policies, particularly cash-value policies like whole life or universal life, can accumulate cash value over time. This cash value grows tax-deferred, offering a significant advantage compared to many other investment vehicles. Policyholders can borrow against this cash value for various purposes, such as funding investments in stocks, real estate, or other ventures. The interest paid on these loans is typically lower than what one might pay on a traditional bank loan. Furthermore, the death benefit remains intact, providing a crucial financial safety net for beneficiaries. Careful planning and understanding of the policy’s terms are crucial to maximize the investment potential without compromising the core insurance protection. For example, a high-net-worth individual might borrow against their policy’s cash value to invest in a promising start-up, potentially generating substantial returns while maintaining the life insurance coverage.

Generating Income with Annuities

Annuities are insurance contracts designed to provide a guaranteed stream of income for a specified period or for life. These contracts can be particularly beneficial for retirement planning. High-net-worth individuals can utilize annuities to create a predictable income stream, supplementing other retirement assets and reducing reliance on market fluctuations. Different types of annuities offer varying levels of risk and return, allowing for customization based on individual financial goals and risk tolerance. For instance, a fixed annuity provides a guaranteed rate of return, while a variable annuity offers the potential for higher returns but also carries greater risk.

Hypothetical Scenario: Strategic Insurance Use for Enhanced Wealth Accumulation

Consider a high-net-worth entrepreneur, Ms. Eleanor Vance, who owns a successful technology company. She holds a substantial whole life insurance policy with a significant cash value. To further expand her business and capitalize on a new market opportunity, she borrows against her policy’s cash value at a favorable interest rate. This loan funds the development of a new product line. The new product is a success, significantly increasing the company’s revenue and value. The increased revenue allows her to easily repay the loan, and she benefits from both the substantial financial gain and the continued protection offered by her life insurance policy. Simultaneously, she utilizes a portion of her increased income to purchase an annuity, ensuring a steady stream of income during her retirement years. This integrated approach to insurance and investment showcases how strategic insurance use can be a catalyst for significant wealth accumulation.

Emerging Trends in High-Net-Worth Insurance

The high-net-worth insurance market is dynamic, constantly evolving to meet the sophisticated needs of its clientele. Driven by technological advancements and shifting economic landscapes, insurers are developing innovative products and strategies to address the unique risks and opportunities faced by the ultra-wealthy. This section will explore several key trends shaping this sector.

The impact of technology and changing economic conditions is profoundly reshaping the insurance landscape. Increased data availability allows for more accurate risk assessment, leading to more precisely tailored policies and potentially lower premiums for individuals with demonstrably lower risk profiles. Conversely, periods of economic uncertainty and inflation often necessitate adjustments in coverage limits and premium structures to maintain adequate protection. The rise of Insurtech companies is also contributing to this transformation, introducing more efficient processes and customer-centric digital platforms.

Personalized and Customized Insurance Solutions

High-net-worth individuals require insurance solutions that are tailored to their specific assets and liabilities. This trend moves beyond standard policies to offer bespoke coverage for unique risks, such as art collections, private jets, and valuable real estate portfolios. For example, insurers are developing specialized policies to cover cyber risks related to digital assets, a growing concern for individuals with significant investments in cryptocurrency or other digital holdings. These policies often include proactive risk mitigation services, such as cybersecurity consultations and incident response planning. Another example is the rise of kidnap and ransom insurance, which has become increasingly relevant in a globalized world where high-profile individuals may face a higher risk of abduction.

Increased Focus on Holistic Risk Management

The ultra-wealthy are increasingly seeking holistic risk management strategies that integrate insurance with other financial planning tools. This involves a comprehensive approach that considers all aspects of their financial well-being, including estate planning, tax optimization, and asset protection. Insurers are responding by offering bundled services and partnerships with wealth management firms to provide a more integrated and seamless client experience. For instance, some insurers now offer integrated services that combine life insurance with estate planning advice, ensuring that wealth is transferred efficiently and tax-effectively to heirs.

The Rise of Parametric Insurance

Parametric insurance is a rapidly growing area within high-net-worth insurance. This type of insurance provides pre-agreed payouts based on the occurrence of a specific, measurable event, rather than requiring a detailed assessment of losses. This simplifies the claims process and offers faster payouts, particularly beneficial for high-value assets where assessing damage can be complex and time-consuming. For example, parametric insurance can be used to cover losses from natural disasters affecting high-value properties, providing a rapid injection of capital to facilitate repairs and recovery.

Technological Advancements in Claims Management

Technological advancements are transforming the claims process, making it faster, more efficient, and more transparent. The use of AI and machine learning allows for quicker assessment of claims, reducing processing times and improving customer satisfaction. For instance, drone technology is being utilized to assess damage to high-value properties after natural disasters, providing accurate and immediate assessments that speed up the claims process. Furthermore, blockchain technology offers the potential for greater transparency and security in claims management, reducing fraud and disputes.

Commonly Asked Questions

What are the common misconceptions about high-net-worth insurance?

A common misconception is that high-net-worth insurance is only for the extremely wealthy. While the premiums can be higher, many strategies are adaptable to various wealth levels. Another misconception is that it’s solely about risk avoidance; in reality, it’s often used strategically for wealth growth as well.

How often should a high-net-worth individual review their insurance portfolio?

Annual reviews are recommended to account for changes in assets, liabilities, tax laws, and personal circumstances. Significant life events like marriage, divorce, or the birth of a child necessitate immediate review.

What is the role of a financial advisor in high-net-worth insurance planning?

A financial advisor acts as a guide, helping clients navigate complex insurance products and strategies. They integrate insurance planning with overall financial goals, ensuring alignment with broader investment and estate planning objectives.

Can insurance help with succession planning for a family business?

Yes, key person insurance can help cover financial losses associated with the death or incapacitation of a key employee or owner, ensuring business continuity. Other policies can protect against various business risks.