In some cases, the lender may even buy a key man policy on an executive in order to cover the cost of the loan if the key player dies or becomes disabled. (mylifeinsurancequotes123.com)
Key - man policies cover the lives of critical personnel. (cnbc.com)
If the key person unfortunately dies, the business generally receives the proceeds of the key man policy tax - free and can use the funds as it so chooses. (keypersoninsurance.com)