Who is responsible for premium payments under a key person disability income policy?

In a key person disability income policy, the business is responsible for premium payments. This type of insurance is designed to protect a business from financial losses associated with the temporary or permanent disability of a key employee who significantly contributes to the organization's success.

When a key employee becomes disabled, the policy provides income to the business, allowing it to cover expenses, hire a replacement, or maintain operations during the employee's absence. As the policy is meant to safeguard the business's interests, it is logical for the business to bear the financial responsibility associated with obtaining coverage. This arrangement helps ensure that the company can continue to operate smoothly despite potential disruptions caused by the loss of a key individual.