Key person insurance is held on the life (or disability) of a specific individual and is owned by the business. If the key person changes role, the cover does not automatically need to be cancelled — but it should be reviewed because the original sum insured was sized to a specific contribution profile. If the key person moves into a less critical role (for example, a founder transitioning to non-executive chair), the cover may be reduced to reflect the diminished revenue dependency. If the key person leaves entirely (resigns, retires, or is dismissed), the business has several options: surrender the policy and stop paying premiums, transfer ownership of the policy to the departing individual personally (the policy can usually be assigned, with appropriate stamp duty and tax considerations), keep the policy in force with the business as owner if there is residual risk to the business from the person's departure (rare), or use the policy to fund any equity buyout under buy/sell arrangements. Most practical buy/sell agreements provide for cancellation of cover when ownership stakes are bought out and the departing person has no ongoing equity interest. The treatment depends on the documentation: business loan agreements that required cover may need amendment or release; partnership agreements may have specific clauses about insurance handover. Discuss the change-of-role or departure with both the broker and the business's solicitor before cancelling cover, particularly if loans are still outstanding or buy/sell triggers have not yet been satisfied.