Compensation Glossary

Key Contributor Insurance

A qualified tax-deductible pension or profit-sharing retirement plan for self-employed individuals and their employees, with contribution units based on net earnings. Disability, health, and/or life insurance policies designed to protect the company for the loss of the services of essential employees, with premiums paid and benefits received by the company, key man insurance. A type of corporate-owned life insurance purchased by a company to protect itself from financial loss.