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Key Person

This coverage protects a business or corporation against a loss caused by the sickness or injury of major or sole revenue generators. This disability coverage is available from specialty carriers. These are benefits that are paid to the corporation—not the insured.  However, they do not count against individual coverage for that insured. Typically, the amount is based on the annual salary of that Key Person, or the amount of revenue that is attributable to them. This is generally paid out in a lump sum after a 365 day elimination period. Other payout options are available. See the Occupational Underwriting file in Broker Resources.


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