Key Person Life Insurance

Key person life insurance or executive life insurance is corporate owned life insurance insuring the life of a valuable key employee who is usually an executive. The corporation pays the premium, owns the policy and is the beneficiary. It may also be used to fund a special benefit that has been designed to attract and retain the executive. Key person life insurance has been used by corporations for several years to indemnify against the loss of the corporation's most valuable asset, their people.