Key Man Life Insurance cover can be purchased to insure the life of an employee who is crucial to the success of the business, and whose loss or death could be detrimental to the company. The business owns the policy, pays the premiums, and is also the beneficiary at the death of the key person. The insurance can be purchased as a whole life insurance policy, or as a term insurance. Key Man Life Insurance benefits can be used in the following situations:

	To buy out the insured person's shares or interest in the company
	To cover costs associated with recruiting a replacement
	To compensate for lost sales or revenue