Key man insurance is a type of life insurance for business that protects the business should one of their key men suddenly die. It is of particular value to small businesses where the key man is the main worker. If he or she should suddenly be unavailable, the business would suffer great loss and in fact, be unable to carry on at all.

But with key man insurance, the business pays the premiums and is the beneficiary should their key person die. This may enable the business to carry on until a replacement can be found. Or if the business must shut down, the insurance can be used to pay bills and debts, pay employees their severance entitlements and pay off investors, if there are any.

So really, key man insurance is the best life insurance a business can have. And when you think about it, it is really cheap life insurance if it gets the business out of the financial trouble it might be otherwise be in when a key employee dies. Just as you can buy life insurance online, so you can also apply for key man insurance online.

When you think of the benefits of having low cost life insurance that includes key man insurance, then you will realise that no business should be without it. Buying life insurance gives you far more options when disaster strikes. You can choose to continue the business or close it down. Either choice will cost money, but key man insurance will keep the business out of trouble.

Key man insurance should not be confused with personal life insurance. If a business is being run by one person who is the sole employer of the business and they have a spouse and dependents, then they should certainly buy personal life insurance – probably in preference to key man insurance.

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