Answered

What is the purpose of key-person insurance?

A. To provide key employees with life insurance coverage
B. To cover decreased business revenues as a result of the death of a key employee
C. To provide retirement benefits to key employees
D. To give senior managers the ability to purchase shares in the business



Answer :

GinnyAnswer

Final answer:

Key-person insurance safeguards companies by offering financial support in the event of a key employee's death.


Explanation:

Key-person insurance is designed to provide financial protection to a company in case of the death of a key employee. This type of insurance helps businesses recover from the financial impact of losing a crucial team member by providing funds to cover expenses like recruiting and training a replacement, maintaining business operations, or compensating for lost profits.


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