Key Person Life Insurance Notice

This Key Person Life Insurance Notice applies when a company or authorized business representative uses RiskCube to explore, quote, apply for, or service life insurance intended to protect a business from the death of a founder, executive, employee, director, officer, or other key contributor.

This notice supplements RiskCube's Terms of Service, Privacy Policy, Electronic Transactions and Communications Consent, Licenses & Disclosures, and Compensation Disclosure.

1. What key person life insurance is

Key person life insurance is generally life insurance purchased for a business purpose. The coverage may be intended to help a company address financial loss, business disruption, lender requirements, investor requirements, replacement costs, succession planning, buy-sell planning, or other business needs if a key individual dies.

Depending on the policy structure, the company or another permitted policyholder may own the policy, pay the premiums, and receive some or all death benefits.

The proposed insured individual may not personally own the policy, control the policy, choose the beneficiary, receive the cash value, or receive death benefits unless a separate written agreement provides otherwise.

2. Company representative authority

By continuing, the person using the application represents that they are authorized to begin the intake process on behalf of the company or organization identified in the application.

The company may provide business information relevant to key person life insurance, such as company name, website, state, industry, headcount, funding stage, revenue, debt, ownership structure, desired coverage amount, business purpose for coverage, and the role of the proposed insured individual.

The company should not submit another person's medical history, prescription information, Social Security number, physician information, lab information, consumer-report information, MIB information, or other sensitive personal underwriting information unless the proposed insured person has provided the required authorization.

3. Proposed insured participation

If life insurance may be sought on the life of a specific person, that person may need to complete a separate insured-person process.

Before medical, prescription, lab, consumer-report, motor vehicle, MIB, financial underwriting, or other sensitive personal information is collected, the proposed insured person may be asked to review and sign separate carrier forms, privacy notices, medical authorizations, consumer-report authorizations, underwriting authorizations, and application documents.

Submitting this company intake does not by itself authorize collection of the proposed insured person's sensitive medical or underwriting information.

4. Company-owned or employer-owned life insurance

Some key person life insurance may be company-owned or employer-owned life insurance.

Before certain employer-owned life insurance policies are issued, the proposed insured may need to receive written notice that the company intends to insure their life, the maximum face amount, and that the company or another permitted policyholder may be a beneficiary. The proposed insured may also need to provide written consent, including consent that coverage may continue after employment or service with the company ends.

RiskCube, the company, the insurance carrier, or another authorized party may require a separate insured-person consent before any policy is submitted, issued, delivered, or placed in force.

This general notice is not a substitute for any required insured-person consent.

5. Information shared with the company

RiskCube may provide the company with business-level information about the key person life insurance process, such as application status, quote status, underwriting status, approved coverage amount, premium, policy delivery status, and servicing information.

RiskCube should not disclose the proposed insured person's detailed medical information to the company except as authorized by the proposed insured person or permitted by applicable law.

6. No tax, legal, employment, or benefits advice

RiskCube does not provide tax, legal, accounting, employment, benefits, estate-planning, securities, or corporate-governance advice.

The company is responsible for determining whether key person life insurance is appropriate, whether it has an insurable interest, whether corporate approvals are required, whether employment or benefits laws apply, whether tax reporting is required, and whether the policy structure is appropriate.