Key Person Insurance - Key Woman & Key Man Life Insurance
Key person insurance protects your company against income losses you might incur due to the death or disability of a key employee. Your business may not survive the loss of its best sales person or Chief Information Officer without an influx of cash.
Key person life insurance policies are often called key man policies. However, often a company's key man is a woman. For this reason key person insurance is the new name for this type of coverage.
These policies are often given or sold to employees when they retire. However proceeds triggered by the death or disability that occurs during the employee's tenure your company should go be used to compensate the company.
Additional life or disability insurance should be purchased to compensate the family.
Any type of life insurance can be used as a key person policy. The difference between a key person insurance policy and other life insurance policies is the owner. A key man or key woman policy will be owned and controlled by the employer.
© April 23, 2011 1800InsuranceCT.com LLC.