`
Key Man insurance is a life insurance policy you take out on a person who plays a vital role in the business. This person is usually the owner or founder, but it could also be an employee whose role is critical in running the business. Without this person’s active involvement, the business would likely go under. To get started, the company will determine who this individual is and take out a life insurance policy on them. The business will pay the premiums and will act as the beneficiary of the policy. In the event that your business experiences the sudden loss of an employee or other key person, the company would receive the life insurance payment.