It can be described as an insurance policy taken out by a business to compensate at for financial losses that would arise from the death or extended capacity of an important member of the business.
The SA under keyman insurance policy is generally linked to business profitability. The Death Benefit in the key man insurance is taxed as income.
Mortgage Redemption Insurance(MRI)
It is an insurance policy that provides financial protection for home loan borrowers. It is basically a decreasing term life insurance policy taken by a mortgagor to repay the balance on a mortgage loan if he /she dies before its full repayment. It can be called loan protector policy.
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