KEYMAN INSURANCE Meaning and
Definition
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Keyman insurance is a type of life insurance policy designed to protect businesses against the financial risks associated with the loss of a key employee, such as a business owner, a key executive, or an employee with specialized skills or knowledge crucial to the functioning and profitability of the company. This type of insurance policy provides coverage in the event of the insured person's death or disability.
Keyman insurance works by compensating the business for the financial consequences caused by the loss of the key employee. The policy payout allows the company to cover expenses related to finding and recruiting a suitable replacement, training the new employee, and stabilizing the company's operations during the transition period. The compensation received may also help to recover any potential loss of profits, repay debts or loans, or reimburse shareholders.
The coverage and premiums for keyman insurance policies are determined by several factors such as the insured person's age, health condition, occupation, salary, and the amount of coverage required by the business. The policy can be purchased by the business itself, with the company acting as the owner and beneficiary of the policy, or by the key employee, with the business being the beneficiary.
Keyman insurance plays a vital role in mitigating the financial risks associated with the sudden absence of a key person within a business. It provides the company with much-needed financial support to ensure continuity and stability, protecting both the business and its stakeholders.
Common Misspellings for KEYMAN INSURANCE
- jeyman insurance
- meyman insurance
- leyman insurance
- oeyman insurance
- ieyman insurance
- kwyman insurance
- ksyman insurance
- kdyman insurance
- kryman insurance
- k4yman insurance
- k3yman insurance
- ketman insurance
- kegman insurance
- kehman insurance
- keuman insurance
- ke7man insurance
- ke6man insurance
- keynan insurance
- keykan insurance
- keyjan insurance
Etymology of KEYMAN INSURANCE
The etymology of the word "keyman insurance" can be broken down as follows:
1. Key: This word has its origins in Old English, derived from the Old High German word "kēgia", meaning "to open" or "to shut". It has been used since the 14th century to refer to a device used for opening or closing locks.
2. Man: This word also originates from Old English, derived from the Proto-Germanic word "mann", meaning "human being". It has been used since the 12th century to refer to an adult male human.
3. Insurance: This word is derived from the Latin word "assurare", which means "to assure" or "to make secure". It entered the English language in the late 16th century and refers to a contractual arrangement in which one party provides financial protection or compensation to another party in case of specified risks.
