Insurance term
Key Person Insurance
Key person insurance is a life or disability insurance policy a business buys on an important employee, owner, or executive whose death or disability could significantly affect the company. The business is usually the owner and beneficiary of the policy, and the money can help cover lost income, hiring and training costs, debt, or other financial impacts.
Example
A small architecture firm buys key person insurance on its lead architect so it can stay financially stable if that person unexpectedly dies or becomes disabled.
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Life Insurance
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