Key person life insurance, also referred to as key man life insurance, may protect your business if you lose an individual unexpectedly (e.g., owner or key employee) who is vital to your business’s success. Key person insurance may also provide your business with financial compensation if this person leaves too soon—for instance, dying unexpectedly or becoming disabled. The insurance payout from a key person life insurance policy may be able to keep your company functional until you replace this individual—or until your business decides to close.