What Is Key Person Disability Insurance?

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   Steve Savant

   Syndicated Financial Columnist, Host of the weekly talk show Steve Savant's Money, the Name of the Game, Scottsdale Arizona

   Key person disability is an executive benefit employers use in two ways: to attract and retain quality employees and to generate income if the key employee is unable to work due to prolonged sickness and/or recovery from an injury. Key persons can be those significantly impacting operation or generating revenue for the firm.

   Answered on September 11, 2013

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   Peggy Mace

   Most of the U.S.

   Traditional Key Man Disability Insurance is a form of Short Term Disability Insurance that is used to cover key (hard to replace, executives, top salespeople, etc) employees in a business. The business is the beneficiary. The income paid to the business when the key person is disabled helps the business to operate until the employee is back on their feet, or gives them the funds to find a replacement.

   Answered on September 11, 2013

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