Key Person Insurance: Lessons from Aaron Rodgers

If you’re a football fan, you likely remember the collective gasp when Aaron Rodgers of the Jets went down with a season-ending injury mere moments into the first game of the year. Beyond the disappointment for the team and its fans, this incident sheds light on a crucial aspect of business risk management: Key Person Insurance. 

In the insurance industry, individuals like Aaron Rodgers are deemed “Key Persons.” These are individuals whose contributions are vital to the success and continuity of a business. While not every Key Person is a sports star, their absence due to disability or death can have severe financial repercussions for the organization they serve. 

For the Jets, the absence of insurance coverage to protect against the possibility of Rodgers getting injured resulted in significant financial strain. This scenario serves as a cautionary tale for businesses of all sizes and industries.

71% of firms were very dependent on one or two key people for their success. Only 22% of respondents had Key Person lnsurance in place.

National Association of Insurance Commissioners Survey



Key Person Insurance is designed to mitigate the financial impact of losing a crucial figure within a company. It provides financial stability by compensating for lost revenue, covering expenses associated with finding and training a replacement, and even assisting with potential shareholder buyouts. 

Every business, regardless of its size or industry, has Key Persons. These individuals may be the founder, CEO, top salesperson, or a key operational leader. Recognizing and safeguarding against the risk associated with their potential absence is paramount to business continuity. 



Financial professionals, including Financial Advisors, Commercial P&C agents, and Benefits Consultants, play a pivotal role in ensuring their business owner clients are adequately protected. By understanding the importance of Key Person Insurance, you can provide invaluable guidance to your clients in navigating this aspect of risk management. 

Moreover, incorporating Key Person Insurance into your suite of offerings presents an opportunity for financial professionals to diversify their revenue streams. By addressing this critical need within their client base, they not only provide added value but also generate an additional source of significant income for their practice.


Assumes owners are all 50 years old. Commissioners Standard, Mortality Table.

0 %
One Owner
0 %
Two Owners
0 %
Three Owners

The probability of the death of at least one of three owners before age 65 is surprisingly high. 



I grew up in upstate New York, so, my best advice has always been don’t ever be like the Jets. But seriously, the case of Aaron Rodgers highlights the importance of Key Person Insurance for businesses. We, as financial professionals, have a responsibility to educate clients about the risks associated with the absence of key individuals and the solutions available to mitigate these risks. By doing so, you not only protect your clients’ businesses but also enhance your own practice’s value proposition. 


Safeguard businesses' most valuable assets and discover the secret sauce to success in the Business Owner Market.


Joshua Rhem has over 15 years of experience in Insurance and Investment services, with experience as an RIA to financial institutions, an insurance producer, and wholesaler. Throughout his career Joshua has always been especially interested in making sure that insurance is viewed as a vital component of a well-constructed comprehensive financial plan. Understanding the obstacles that advisors face each day, Josh is eager to support them, and promptly responds to their needs. He enjoys helping advisors, brokers and agents grow their business with strategies to identify opportunities and helping to effectively position insurance products as meaningful solutions to their clients’ financial goals.

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