How does key-person disability insurance work?

Key-person disability insurance is a type of insurance policy that provides financial protection to a business in the event that a key employee becomes disabled and is unable to perform their job duties. A key employee is someone whose skills, knowledge, or experience are critical to the success of the business.
This type of insurance policy typically pays a monthly benefit to the business if the key employee is unable to work due to a covered disability. The benefit amount is typically based on the employee’s salary or a percentage of the company’s revenue.
The purpose of key-person disability insurance is to help the business cover expenses such as hiring a temporary replacement for the disabled employee, paying for additional training or education for a replacement, or making up for lost revenue due to the absence of the key employee.
It’s important for businesses to consider purchasing key-person disability insurance if they rely heavily on one or a few key employees. Without this type of insurance, a disability could have a significant negative impact on the business’s finances and operations.

Why choose Principal®?
Principal® is a well-established and respected financial services company that has been in business for over 140 years. There are several reasons why someone might choose Principal® for their financial needs:

  • Expertise: Principal® has a team of experienced financial professionals who can provide expert guidance and advice on a wide range of financial matters, including retirement planning, investments, insurance, and more.
  • Comprehensive services: Principal® offers a wide range of financial products and services, including retirement plans, investment management, insurance, and banking services. This means that you can get all of your financial needs met in one place, which can save you time and hassle.
  • Technology: Principal® has invested heavily in technology to make it easier for customers to manage their accounts and access information online. The company offers a variety of digital tools and resources, including mobile apps, online account management, and educational resources.
  • Financial strength: Principal® is a financially strong company with a solid reputation for stability and reliability. This can provide peace of mind for customers who want to ensure that their investments and other financial assets are secure.
  • Customer service: Principal® is known for its high-quality customer service and has won several awards for customer satisfaction. The company has a team of dedicated customer service representatives who are available to assist customers with their needs and answer any questions they may have.


In conclusion, Principal® is a reputable financial services company that offers a wide range of products and services to meet the diverse needs of its customers. With over 140 years of experience in the industry, Principal® has built a solid reputation for expertise, comprehensive services, technology, financial strength, and excellent customer service.
By choosing Principal®, customers can benefit from the company’s financial expertise and guidance, as well as its robust digital tools and resources that make managing finances easier and more convenient. Additionally, Principal’s financial strength and stability provide customers with the peace of mind they need to invest and grow their assets with confidence.
Overall, Principal® is a trusted partner for anyone looking to manage their finances effectively, plan for retirement, invest wisely, or protect their assets with insurance. With a strong commitment to customer satisfaction and a wide range of financial solutions, Principal® is a smart choice for anyone seeking reliable and comprehensive financial services.

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