What is the purpose of a key person insurance?
Key person insurance is a type of life insurance policy that provides a death benefit to a business if its owner or another significant employee passes away, according to the Insurance Information Institute (III).
What is the purpose of insurance quizlet?
The purpose of insurance is to protect against losses caused by pure risk. This is accomplished through the insurance contract, which requires one party to pay a specified sum to another if a previously identified event occurs.
Who is the owner and who is the beneficiary on a key person life insurance policy?
Who is the owner and who is the beneficiary on a Key Person Life Insurance Policy? The employer is the owner and beneficiary.