Final answer:
Team play indemnification in life insurance primarily involves employment-based group life insurance and key person life insurance. Group policies provided by employers offer broad coverage, while key person and partnership policies are directly purchased for specific indemnification needs.
Step-by-step explanation:
When it comes to team play indemnification in the context of life insurance, the types primarily used are employment-based group life insurance and key person life insurance.
Employment-based insurance often comes in the form of group life policies, which are provided by an employer and can cover just the employee or the entire family.
Another relevant type is key person life insurance, which is a policy taken out by a business to indemnify against the loss of a key employee whose death might significantly impact the company's operations. Unlike employment-based group coverage, key person insurance is a direct purchase by the company for its specific indemnification needs.
Moreover, businesses may also consider partnership life insurance, where each partner holds a policy on the others, and in the event of death, the death benefits are used to buy out the deceased partner's share.
This ensures that the business can continue operating smoothly without financial strain. These policies are also purchased directly and are critical in the event of an unforeseen loss of a partner.
While direct-purchase insurance policies can be tailored to specific individual needs, employment-based group policies offer a broad coverage that can be more cost-effective, since they're spread over a large group of individuals. Businesses typically weigh the cost versus benefits of each type of policy when considering life insurance for indemnification purposes.