What are the most common types of business life insurance?

The most common types of business life insurance include key person insurance, buy-sell agreements, and executive bonuses because these are specifically designed to address the unique needs of businesses.

Key person insurance is essential for businesses that rely heavily on the skills or presence of certain individuals, such as a founder or senior executive. If something were to happen to that key person, this insurance provides a financial safety net, allowing the business to maintain stability and continuity.

Buy-sell agreements are vital for partnerships and closely-held businesses. They outline the process for buying out a partner's share if one partner passes away or becomes disabled, using the life insurance proceeds to fund that buyout. This mechanism ensures that the business remains intact and that the deceased partner's beneficiaries are compensated fairly.

Executive bonuses serve as a tool to attract and retain top talent by offering additional benefits tied to a life insurance policy. This not only provides security for the employee but also acts as a form of deferred compensation for the employer.

In contrast, term insurance and whole life are more general types of life insurance that do not directly cater to the specific needs and structures of businesses. Universal life and variable life also fall into the broader category of personal life insurance products. Final expense insurance, while important for individuals,