This coverage is designed to protect your business in the event of the death of a key employee, owner, partner or stockholder.  Key Person policies are often used to buy out the insured person’s shares or interest in the company. This type of policy, is often placed in conjunction with buy-sell agreements, which legally facilitate this process. Tax-free proceeds from key-person insurance can also be used to recruit replacement management, compensate for lost business during the transition, or finance any number of timely business transactions.