Key Person Insurance

Meaning: 

It helps prevent problems in the business when a key person is no longer able to work.

This insurance provides financial stability to the company during difficult times.

How to understand key person insurance:

It is important for businesses to have this insurance to keep running smoothly.

The insurance money helps the business pay for any losses caused by the key person's absence.

Uses in Finance:   

Key Person Insurance is used in business continuity planning, helps with loan approvals   (banks often require it), and is essential for managing risks in startups.