(Key Man) Income Replacement, or Permanent Health Insurance, is designed to enable employers to provide a replacement income (and other associated benefits) to employees who are unable to work as a result of illness or disability.

(Key Man) Income Replacement can be set up to either pay the member of staff directly, thereby removing a moral quandary and financial burden from the company, or it can be set up to pay the company, thereby allowing them the freedom to continue paying the sick employee or to hire a temporary replacement.

By definition, most businesses rely on a small number of key people to
carry out their primary functions. This means that a business could be
adversely affected quite significantly if a key player be lost through a
long term illness, death or disability.