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Glossary of Terms

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From The Glossary »

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Keyperson Assurance:

Keyperson assurance refers to policies effected by an employer on the life of an employee with the purpose of compensating the business for the loss it will sustain should the employee die prematurely. The plan guarantees that cash will be available to absorb any disruptions to the business, protect existing credit facilities and provide the necessary funds for the recruitment and training of a replacement.
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