Keyman Insurance

What is a 'keyman (KM)'? The term indicates a person who is an employee in a business organization at such an important post (an executive, a director, an expert, a technocrat etc) whose death would result in a financial loss to the organization. What is 'keyman insurance'? Insurance policies for such employees of a business organization whose premature death would cause a financial loss to the organization. The insurance taken on the lives of such person to protect the business from financial loss is called 'keyman insurance'. The premium on such policies has to be paid by the employer. Eligibility for keyman insurance The 'keyman insurance (KMI) is allowed to the employee if he satisfies the following condition; The 'keyman' should hold less then 51% shares of company. The total no. of shares of the company held by the keyman and his family should be less then 85% The keyman should be literate. Factors to be considered for insurance cover on key-man's life. Key-man's qualification. Experience in different fieldas. Previous record and service period in the organization. Is he the only key-man in the specific field or otherwise?