Key Man Insurance
Keyman Insurance Policy (or Key Person Insurance) is a type of life insurance taken out by a business on the life of a crucial employee (the “key person”), such as a founder, executive, or sales manager.
Key Features:
- Purpose: Provides financial protection for the business against the loss of important personnel due to death or long-term disability.
- Benefits: The business receives a payout upon the key person's death, helping to cover lost revenue, recruitment costs, and other financial impacts.
- Premiums: The business pays the premiums, and it is both the policyholder and the beneficiary.