Life insurance owned by a business entity on the life of a key individual that will, in the event of his or her death, offset a loss in earnings and provide the funds necessary to find, hire, and develop a replacement. It is designed to offset losses resulting from the death of a key person, such as reduced sales, interruption of a vital research project, flow of production, or an impaired credit standing.
Insurance Encyclopedia
Key person
An officer, employee or other person is a firm who possesses skills, knowledge or other qualities difficult to replace.
Key Person for Loss
The loss a business may suffer because of death disability of a employee with special skills, knowledge or other qualities difficult to replace.
Key Person Insurance
Insurance designed to protect a business institution against the loss of income resulting from the death or disability of a key employee.
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A policy that protects a firm from loss caused by the death or disability of a ‘key person’ within the company.
Key person insurance (Life Insurance)
In health insurance, a policy that offers salary continuation or medical care to a key employee. The premiums for this plan are paid in part or totally by the employee. In life insurance, a policy payable to the employer that covers the life of a key employee whose death would cause the employer a financial hardship.
Key Person Loss
Loss of the service of a key person through death, disabling injury, disease or resignation which may result into major financial problems for the firm losing its key person.
Key Person, Indian Insurance Company
IRDA defined “key persons” include the chief executive officer, chief marketing officer, appointed actuary, chief investment officer, chief of internal audit, chief finance officer, chief risk officer and chief compliance officer of insurance companies.
Key Replacement Riders for Motor Insurance
Cost of replacement of locks and keys, if the vehicle is broken into or cost of replacement of lost/stolen keys. The sum insured ranges differently from insurer to insurer and usually the per occurrence limit is 50% of the sum insured. Own Damage claim is not a condition precedent for this cover.
Key-person health insurance
A policy which provides reimbursement to a business against the work time lost by a key employee who is disabled.
Key-person insurance
Type of life insurance created to protect a company against the loss of income resulting from the disability or death of an employee who is in a vital business position for the firm’s success.