Jargon Buster - Definition of Key Man Insurance
Please select your letter of choice below to see the list of terms:
- Key Man Insurance
is an insurance policy that is setup to cover a key employee or business partner. There are three main types of cover: Life Insurance, Income Protection and Critical Illness, however Life Insurance is the most common.
Key Man Insurance, also known as Key Person Insurance, is set up on a 'life of another' basis so that the company owns the policy and is therefore insuring their employee. The aim of such a policy is to provide financial aid for the company if the employee dies (Key Man Life Insurance) or is unable to work due to sickness or disability (Key Man Income Protection).
Please note that all definitions are intended for general guidance only. For official and current definitions you should always double check your policy wording.
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