Which option is a business use for life insurance?

Key person insurance serves as a vital business tool by providing financial protection for a company against the loss of a crucial employee whose absence could significantly impact the business. This type of insurance ensures that the company has the resources to manage the financial consequences associated with the loss of a key employee, such as the costs of hiring a replacement, loss of revenue, or the potential decline in business operations.

The underlying principle of key person insurance is that certain employees possess specialized knowledge, experience, or connections that are critical to the company's success. If such an employee passes away or becomes disabled, the insurance payout can help the business recover and continue its operations. This coverage not only helps in mitigating financial risk but also provides reassurance to stakeholders, ensuring the company's stability during difficult times.

Other options, while they may be related to employee benefits, do not directly align with a business purpose for life insurance as effectively as key person insurance does.