How Exactly Does Key Person Life Insurance Work? 
Usually , the way Key Person Life Insurance works is that the employer or business takes out a life insurance policy on an important employee in the company , one that is vital to the success of the business and would need to be carefully replaced if he or she died . The employer or business pays the premium and and is the beneficiary . If death of the key employee occurs , the business has money to protect them from loss of production and solicit and train a new employee to replace the key person . 