What Is Key Employee Life Insurance? 
Lets suppose you own a business . Obviously you cant do everything yourself , so you need to hire people with special skills . Collectively you can get to where you want to go . The people with special skills might include a high-ranking executive . Might also include a highly skilled technician . Perhaps a top salesman . All these people play roles that are key to the operation . And you , as the entrepreneur of the enterprise , are very much a key person too . This is not to say that people who are not key do not bring value to the company and are not important . If all the business needed was key people , why would you hire anybody else ? But key people are the ones whose loss would create the biggest problems . Sales could go down . Vendors might not get paid . Clients might get nervous about orders being filled . Banks might think twice about lending money . You need to protect your business against the loss of these people . If any or all of them disappeared tomorrow , you need to be sure that your business can go full speed ahead . Employees , clients , prospects , vendors , lenders , investors , and everyone else related to your business , need to be reassured that business will take place as usual . And that takes money . If you have the exact amount of money you need exactly when you need it , then you could tell people to not worry . Orders will get filled . Bills will get paid . You can take the time needed to find the right replacement . And you dont want to have to set up an investment program to cover these people . Nor do you want to have to borrow the money . You want this coverage to come as cheaply as possible without any hoops to jump through . That is what life insurance does when it is purchased for key person coverage . 