Who is the beneficiary in a key person insurance?

A life insurance policy on a company's most valued employee or workers is known as key person insurance. A rider for disability coverage can be added to a policy to aid if a key employee becomes disabled.

If a critical employee dies or gets handicapped, key person insurance can assist protect a small firm.

The firm owns the policy, pays the payments, and is the beneficiary of a key person life insurance policy. If an important employee dies, the company receives a death benefit. This money can be used to assist a company replace revenue lost while they look for a replacement.