What is keyman insurance?
Keyman insurance is a type of life insurance policy that a business takes out on an essential employee whose skills, leadership, or expertise are crucial to its operations and financial stability. The business typically owns the policy, pays the premiums, and receives a lump sum benefit if the keyman passes away or is diagnosed with a terminal illness.
This payout helps the business cover lost revenue, hire and train a replacement, or repay outstanding debts where the keyman was a guarantor. The policy ensures that the company can continue operating smoothly despite losing a vital team member.
