There are two types of life insurance policies specifically designed for business owners.
Buy Sell Agreements -
In the scenario one business owner dies, what will the other do? In the case of a Buy Sell Agreement, a life insurance policy is offered to the family of the deceased as recompense for giving up their share of the business. The business has only one owner now.
Key Person Insurance -
If a business owner were to lose their best salesman, or their key engineer, it could destroy a business. With Key Person Insurance, the company is given a certain amount of money to help the business continue on.