Key Person Insurance is a type of life insurance that provides death benefit to a business if the owner or important key employee passes away, according to the Insurance Information Institute (III).

Some ​reason why Business's pick Key Man Insurance:

• If the death of a Key Employee could threaten the company financially.
• When Co-Owning a business and the partner wants to buy out the company shares in case of a death.
• When a financial institution or any other creditor needs collateral for a business loan and requires the option of putting a lien on a key person. (Collateral assignment)
• Applying for a business line of credit
• Wanting to expand the business
• Coverage is a business asset that enhances your company’s creditworthiness for commercial borrowing