What is "business life insurance"?
Business life insurance has been around for years. Let's say that you have two partners, I had this very interesting case where I had two business partners. One was a famous dress designer, and his partner was the brains behind the finance part. Both of them worked together; the fashion designer was incredible. Very famous, and knew how to make the most beautiful clothes in the whole wide world, but knew nothing about business. The partner knew how to negotiate the advertising deals with the television stations, knew how to write up contracts, knew how to get loans from the banks. Together they worked in an incredible business. If the designer dies, the partner who was the brains behind the financial part might lose total value of the business. And conversely, if the fashion designer loses his partner who's the brains behind the financial part, the business could go down. So I sold business insurance on the fashion designer and on the financial manager of the business together. The insurance was put in force, millions of dollars of life insurance. Unfortunately the fashion designer died. The business is still intact today, doing well, and that cash that came from the life insurance policy was given to the business. The business manager took that money, and over the years was able to finally find people that could design in the style that the original fashion designer designed. And now the business is thriving and doing quite well. That's called "Key Man" or "Key Person Insurance."
