Final answer:
The correct answer is A.A key person insurance policy primarily pays for the costs associated with training a replacement for the insured key employee. It does not cover personal income loss, workers' compensation, or hospital bills.
Step-by-step explanation:
Key person insurance is a specific type of corporate-owned life insurance designed to provide financial protection for a business in the event that a key employee, whose knowledge, work, or overall contribution is considered uniquely valuable to the company, dies or becomes incapacitated.
key person insurance policy can pay for costs related to the training of a replacement, which may include search costs, training fees, and any loss in productivity while the new employee is brought up to speed.
It is not meant to cover personal income loss, workers' compensation, or hospital bills of the key employee. Workers' compensation insurance is rather a separate type of insurance that provides benefits to employees.
who suffer from an injury on the job. Other insurance types like health, car, house, renter's, and life insurances provide covers that are personal or asset-related.