Glossary of Insurance Terms (K)

K

Keogh plan. In the United States, a qualified individual retirement arrangement (IRA) that allows self-employed persons to deposit a portion of their income earned from self- employment into a tax-deferred savings plan. Also known as HR 10 plan. See also individual retirement arrangement (IRA).

key person. Any person or employee whose continued participation in a business is necessary to the success of the business and whose death or disability would cause the business a significant financial loss.

key-person insurance. A type of life insurance or disability insurance that protects a business from the financial losses that occur when a key person dies or becomes disabled.