Key Person Insurance Policies are designed to protect a business from the financial impact of the death, terminal illness or critical illness of one of their key employees. A key person is a member of staff whose skills, knowledge, experience or leadership qualities are crucial to the ongoing success of the business. In the event of the death/critical illness of the employee the business would receive the funds to help mitigate the disruption caused. This allows the business to meet the costs of recruitment. Alternatively, funds may be needed to pay off debts or replace lost profits.