Absolutely — here’s the revised blog with stronger, clearer headings and natural flow while keeping your original tone and structure intact:

Over the past few weeks, I’ve had three separate conversations about life insurance.

One client wanted to insure a key employee. Another needed a policy to secure a loan. And then someone asked the question I always get: “Hunt, can I deduct life insurance?”

When a topic comes up that often, it’s usually a sign we should talk about it.

And just to be clear — I’m not selling life insurance. My goal is to help you understand it before someone tries to sell it to you.

Why Life Insurance Is Suddenly a Shop Owner Topic

Life insurance doesn’t usually feel urgent — until it is.

For shop owners, it typically comes up in three situations:

• A key employee becomes indispensable
• A bank requires it for a loan
• You start thinking about protecting your family

All three are legitimate reasons. The key is understanding which one applies to you — and whether it truly makes financial sense.

Key Employee Insurance: Protecting the Business

Let’s start with the key employee conversation.

I had a client who has successfully worked themselves out of daily operations. They have a general manager who is absolutely critical to the company’s success.

Their question:
“Can we take out life insurance on this person?”

Yes, you can insure a key employee.

Now the better question is: should you?

Ask yourself:

• If this person were suddenly gone, what would it cost?
• How long would recovery take?
• Would revenue drop significantly?
• Would customers leave?

If losing that individual would create a major financial setback, key person insurance can provide a buffer.

If it were painful but manageable, it may not be worth the premium.

Insurance should match risk — not emotion.

Using Life Insurance as an Employee Benefit

Some shop owners don’t insure one key person. Instead, they provide small policies — around $20,000 — for their entire team.

This isn’t about protecting the business. It’s about supporting your people.

In a tragic situation, that money won’t make someone financially independent. But it can cover funeral expenses and help a family through a difficult time.

If you have a younger team, these policies can be surprisingly affordable. It’s a small but meaningful benefit that reflects strong leadership.

Term vs. Whole Life: Keep It Simple

This is where things often get confusing.

There are two primary types of policies: term life and whole (or universal) life .

Term Life: Straightforward Protection

With term life, you choose:

• The number of years (10, 20, 30)
• The coverage amount
• The premium

If you pass away during the term, it pays.
If you outlive the term, you get nothing.

It’s usually the most affordable option, especially when you’re younger and healthy. The premium stays consistent during the term.

Term life is not an investment. It’s protection. If you make it to the end and never use it, that’s a win.

Whole Life: More Features, Higher Cost

Whole life is essentially term insurance plus a cash value component.

Part of your premium builds savings. You can borrow against it. It’s more complex and significantly more expensive.

In my experience, whole life works best for high-income individuals who have already maximized retirement accounts and want another long-term planning tool.

For most shop owners simply looking to protect income and debt obligations, term is usually the cleaner fit.

One warning: both types require consistency. Stop paying premiums long enough, and coverage can lapse. I’ve seen that happen, and it’s painful.

The Tax Question Everyone Asks

“Can I deduct it?” In general, life insurance premiums are not deductible. Why?… Because if you deduct the premiums, the death benefit becomes taxable.

Saving a few thousand dollars in tax today isn’t worth creating a large tax bill on a six-figure payout later.

On most returns, life insurance premiums are recorded as non-deductible expenses. They can run through the business — they just don’t reduce your taxable income.

And most of the time, that’s exactly what you want.

How to Decide What You Actually Need

This decision is personal and situational.

Start with these questions:

How much debt do I have? Would my family inherit obligations they can’t manage?

Do I have dependents? A married owner with young kids has very different needs than someone single.

Would losing a key employee severely impact revenue? If yes, consider key person coverage.

What’s the purpose? Debt protection? Income replacement? Long-term planning?

Can I afford the premium long term? Insurance only works if you keep it active.

Final Thoughts: Protection, Not Investment

Statistically, life insurance isn’t a great investment. It can’t be — otherwise insurance companies wouldn’t make money.

But that’s not the point.

It’s protection.

Protection for your family.
Protection for your business.
Protection for the unexpected.

If you reach the end of your term policy and never use it, you won’t be upset about the premiums. You’ll be glad you planned responsibly — and that you never needed it.