What does Key Employee Insurance mean? Read on to discover the definition & meaning of the term Key Employee Insurance - to help you better understand the language used in insurance policies.
Key Employee Insurance
Key employee insurance refers to a life insurance policy owned by a corporation or business on a key employee's life. The business or corporation purchases the policy and receives the proceeds of the policy in the event of the employee's death. In most cases, the insurance is on employees whose death would affect the successful operation of the business. A key employee is someone whose knowledge and skills contribute significantly to an organization's operations.
We hope the you have a better understanding of the meaning of Key Employee Insurance.