Business or “key person” life insurance is purchased and paid for by a company or partnership to insure the lives of owners. The company receives the insurance payout upon death, which is then used to “buy-out” that partner, thereby providing proceeds to the family. Key person life insurance also funds a buy sell agreement in case of death, disability or retirement. The life insurance payout can also be used to pay off debts, bide time to find a replacement, pay severance or otherwise provide capital to wind down the business.