Business Life Insurance
Definition
- A life insurance policy purchased by a business on the life of an important executive. A business life insurance policy, also known as "key person insurance," protects a business from loss due to the death of a key employee, buying the company time to find a suitable replacement or to implement new business strategies to fill the void of the lost employee.
Synonyms
business owner death coverage, company life insurance, life insurance policy, stakeholder policy
Related Terms and Acronyms
- Business Continuation Insurance — Definition,
- Insurance that provides coverage in the event that someone integral to the operation of a business dies or becomes disabled.
- Entity-Purchase Agreement — Definition,
- A plan used for businesses with multiple owners where insurance policies are taken out for each owner in the amount of their ownership stake.
- Group Life Insurance — Definition,
- Life insurance offered to a large number of people belonging to an organization, usually as part of a benefit package.
- Insurable Interest — Definition,
- Something of sufficient worth and benefit that an individual or entity would have reason to insure against its lost.
- Single Interest Insurance — Definition,
- Insurance that covers a single party when more than one party has a stake in a property.
