Executive life insurance has also been called the key man insurance. Your organization is insured against the loss of a key person in your corporation; as the name key man itself suggests. On the event of death of a key person of your corporation, the organization might suffer because of the loss of administration skills and if it is regarding a top sales person company's sales might also come down drastically. The money from the insurance might also be incurred for the cost of training of an efficient alternate who would be able to carry on with the responsibilities of the deceased key person. Now a days many big Firms are also taking these policies in large numbers whereas earlier, only small companies used to take these policies.

Who is eligible for Executive life insurance?
A policy of executive life insurance can be considered to be taken for any executive who might be a key person and is tremendously significant for your corporation. A key person or a key executive can be the director of the corporation, among the partners of the business, a top sales executive, a project manager The one who has explicit skill sets and whose loss can incur a enormous impact or a huge loss to the company can be a key executive.

When can an Executive life insurance policy be purchased?
An executive life insurance policy can be purchased for an executive who has his ongoing activities in the corporation and is in a vital position in the corporation.

It is crucial to take an insurance policy before the executive attains an age of 65. Taking a life insurance policy along with a disability policy is highly recommended. The amalgamation of a disability insurance and a life insurance gives you a comprehensive insurance plan which will protect you against the temporary loss as a result of disability of the executive. The premium is saved as well.

For how much must be a policy purchased?
The amount is decided by taking into consideration the executive's yearly salary, the size of the business and debt in the business. The policy taken by the corporation is typically about 2-3x of the annual salary of the executive. But the policies are also been taken as high as 15x.

What is covered by an Executive life Insurance?
· Insurance to defend the profits. The losses occurred in the company owing to loss of a person can be availed through insurance on the event of death of that person. Other shareholder's interests are protected. The buying of the shares of the deceased person can be made by the other shareholders availing the policy.
· Insurance against debts. Any banking loans or any other banking facilities taken by the deceased are protected by the policy.

Executive Life insurance and Disability Insurance.
There is a total difference between Executive Life insurance and Disability Insurance. The key difference being that life insurance is availed only on the occurrence of death of the executive that is in case of permanent and irrevocable loss of the executive. Whereas disability insurance is against any disability caused to the executive and only on a temporary basis in which period the executive is unable to work for the corporation.