Key person insurance is a life insurance policy that a company purchases on the life of an owner, a top executive, or another individual considered critical to the business. The company is the beneficiary of the policy and pays the premiums. If the key person dies or becomes disabled, the company receives the insurance payout. 

This payout can help replace lost profits or cover expenses until the business can find a replacement for the key person³¹².

(1) Key Person Insurance: Definition, Cost, Types, and How It Works. https://www.investopedia.com/terms/k/keypersoninsurance.asp.

(2) Key Person Insurance - Overview, How It Works, Example. https://corporatefinanceinstitute.com/resources/management/key-person-insurance/.

(3) Key Person Insurance: Cost, Definition, Providers - NerdWallet. https://www.nerdwallet.com/article/small-business/key-person-insurance.

(4) The Best Key Person Insurance for 2023 - Investopedia. https://www.investopedia.com/best-key-person-insurance-5116620.