Which of the following insurance policies is taken by a business firm on the life of a very important person to protect the firm against financial loss?

Key person insurance, also called keyman insurance and key man insurance, is an important form of business insurance. There is no legal definition for "key person insurance". In general, it can be described as an insurance policy taken out by a business to compensate that business for financial losses that would arise from the death or extended incapacity of an important member of the business. To put it simply, keyman insurance is a standard life insurance, TPD insurance or trauma insurance policy, that is used for business succession or business protection purposes.