Life insurance protects against the economic loss that occurs at the insured's death. Usually a person's earned income dies with them. If an insured has people in their life they care about who would be hurt financially, life insurance can mitigate the financial loss.
This is also true in the business arena. The death of a key employee may hurt the company he worked for, so key man life insurance protects the company.
Business partners may insure each other so that they will have the necessary funds to purchase the deceased partner's share of the business from the heirs. This protects both the surviving partner as well as the deceased partner's family.
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This is also true in the business arena. The death of a key employee may hurt the company he worked for, so key man life insurance protects the company.
Business partners may insure each other so that they will have the necessary funds to purchase the deceased partner's share of the business from the heirs. This protects both the surviving partner as well as the deceased partner's family.