{"id":3957,"date":"2026-04-23T09:17:44","date_gmt":"2026-04-23T09:17:44","guid":{"rendered":"https:\/\/jumpp.finance\/blog\/?p=3957"},"modified":"2026-04-23T09:17:45","modified_gmt":"2026-04-23T09:17:45","slug":"keyman-insurance-policy","status":"publish","type":"post","link":"https:\/\/jumpp.finance\/blog\/protecting-your-finances\/keyman-insurance-policy\/","title":{"rendered":"Keyman Insurance Policy in India (2026): Meaning, Benefits, Coverage and Limitations"},"content":{"rendered":"<div class='main-article-wrapper'>\n<p class=\"wp-block-paragraph\">When businesses plan for risk, they think about markets, cash flow, and competition. Very few plan for the sudden absence of the one person who keeps everything running. That gap is exactly where Keyman Insurance fits in.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In this blog, learn the purpose and benefits of a keyman insurance policy.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_a_Keyman_Insurance_Policy\"><\/span>What is a Keyman Insurance Policy?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A Keyman Insurance Policy is a life insurance plan taken by a company on a crucial employee whose role directly impacts business performance.<br>The company pays the premium and receives the payout if the key person dies or becomes permanently disabled.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Key Features of Keyman Insurance Policy<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Business protection:<\/strong> It helps the company handle financial disruption caused by the loss of a key individual.<\/li>\n\n\n\n<li><strong>Company as beneficiary:<\/strong> The payout is received by the business itself, ensuring immediate liquidity support.<\/li>\n\n\n\n<li><strong>Covers critical roles:<\/strong> This applies to founders, directors, or employees whose absence can affect revenue or operations.<\/li>\n\n\n\n<li><strong>Flexible coverage amount:<\/strong> The sum assured is usually linked to the person\u2019s contribution or company valuation.<\/li>\n\n\n\n<li><strong>Supports business continuity:<\/strong> Funds can be used to repay liabilities, retain confidence, or onboard replacements.<\/li>\n\n\n\n<li><strong>Tax consideration:<\/strong> Premiums may qualify as a business expense depending on prevailing tax rules in India.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">At its core, Keyman Insurance works very similarly to what people understand as <a href=\"https:\/\/jumpp.finance\/blog\/protecing-your-finances\/what-is-term-insurance\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>term life insurance<\/strong>,<\/a> simple protection that supports financially when something unexpected happens.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Keyman_Insurance_Coverage\"><\/span>Keyman Insurance Coverage<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">It coverage provides a payout to manage losses, protect operations, and ensure the company does not face sudden financial instability.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Death cover:<\/strong> It provides a lump sum payout to the company if the key person passes away during the policy term.<\/li>\n\n\n\n<li><strong>Disability protection:<\/strong> Some policies also include coverage if the individual becomes permanently disabled and unable to work.<\/li>\n\n\n\n<li><strong>Loss of profits coverage:<\/strong> This helps compensate for revenue disruption caused by the absence of a key contributor.<\/li>\n\n\n\n<li><strong>Debt protection:<\/strong> The payout can be used to repay business loans or financial obligations linked to that individual.<\/li>\n\n\n\n<li><strong>Replacement cost support:<\/strong> It allows the business to fund hiring, training, and transition costs for a new employee.<\/li>\n\n\n\n<li><strong>Policy types:<\/strong> Coverage is usually structured as term insurance or, in some cases, long-term plans, depending on business needs.<\/li>\n\n\n\n<li><strong>Coverage amount basis:<\/strong> This is generally calculated based on the person\u2019s salary, role, or contribution to company profits.<\/li>\n\n\n\n<li><strong>Tax treatment in India:<\/strong> Premiums are treated as business expenses under Section 37(1) as per guidelines from the Central Board of Direct Taxes.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Keyman_Insurance_Roles\"><\/span>Keyman Insurance Roles<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Keyman Insurance involves specific roles that define who buys the policy, who is covered, and who provides the coverage.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>The business or employer (policyholder):<\/strong> This is the entity that initiates the policy, pays the premiums, and holds full control over it.<\/li>\n\n\n\n<li><strong>The key person (insured individual):<\/strong> This refers to the employee whose expertise, leadership, or relationships are critical to the company\u2019s functioning.<\/li>\n\n\n\n<li><strong>The insurer (insurance provider):<\/strong> This is the company that underwrites the risk, issues the policy, and settles claims as per the terms.<\/li>\n\n\n\n<li><strong>Internal decision makers:<\/strong> They identify who qualifies as a key person based on impact, not just designation.<\/li>\n\n\n\n<li><strong>Financial and compliance teams:<\/strong> These ensure documentation, valuation, and tax treatment are handled correctly in line with Indian regulations.<\/li>\n\n\n\n<li><strong>External advisors, if involved:<\/strong> They may assist in structuring the policy, especially for growing businesses or complex ownership setups.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">While Keyman Insurance protects the business, understanding <strong><a href=\"https:\/\/jumpp.finance\/blog\/protecing-your-finances\/what-is-life-insurance\/\" type=\"link\" id=\"https:\/\/jumpp.finance\/blog\/protecing-your-finances\/what-is-life-insurance\/\" target=\"_blank\" rel=\"noreferrer noopener\">life insurance meaning<\/a><\/strong> is equally important for individual financial planning.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Types_of_Keyman_Insurance_in_India_2026\"><\/span>Types of Keyman Insurance in India (2026)<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Keyman insurance in India is mainly offered in a few structured forms based on the type of risk a business wants to cover.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Type<\/strong><\/td><td><strong>What it Covers<\/strong><\/td><td><strong>When It Is Used<\/strong><\/td><\/tr><tr><td>Keyman Term Insurance<\/td><td>It provides pure life cover for a fixed period with a lump sum payout on death.<\/td><td>This is the most common option used for cost-effective, high coverage protection.<\/td><\/tr><tr><td>Keyman Disability Cover<\/td><td>It offers financial support if the key person becomes permanently disabled and cannot work.<\/td><td>This is useful when the role depends heavily on active involvement or skills.<\/td><\/tr><tr><td>Keyman Critical Illness Cover<\/td><td>It pays a lump sum if the insured is diagnosed with specified serious illnesses.<\/td><td>This helps manage sudden medical-related disruption in leadership or operations.<\/td><\/tr><tr><td>Keyman Whole Life Insurance<\/td><td>It provides lifelong coverage and may include a savings or cash value component.<\/td><td>This is chosen by businesses looking for long-term coverage with added financial value.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Keyman_Insurance_Benefits\"><\/span>Keyman Insurance Benefits&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">It helps businesses stay financially stable if a crucial employee is no longer available due to death or disability.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It provides a lump sum payout that can be used to manage losses, repay debts, and maintain operations without disruption.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Business continuity support:<\/strong> It ensures the company can continue day-to-day operations without immediate financial stress.<\/li>\n\n\n\n<li><strong>Protection against profit loss:<\/strong> This helps compensate for the revenue impact caused by the absence of a key contributor.<\/li>\n\n\n\n<li><strong>Debt and liability coverage:<\/strong> It can be used to clear outstanding loans or obligations and avoid financial strain.<\/li>\n\n\n\n<li><strong>Hiring and training support:<\/strong> The payout allows the business to recruit and train a suitable replacement.<\/li>\n\n\n\n<li><strong>Tax efficiency:<\/strong> Premiums are generally treated as business expenses under guidelines from the Central Board of Direct Taxes.<\/li>\n\n\n\n<li><strong>Improves stakeholder confidence:<\/strong> This reassures investors and lenders about the company\u2019s preparedness.<\/li>\n\n\n\n<li><strong>Covers disability risks:<\/strong> Some policies extend coverage if the key person becomes permanently disabled.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Limitations_of_Keyman_Insurance_You_Must_Not_Avoid\"><\/span>Limitations of Keyman Insurance You Must Not Avoid<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Keyman insurance offers strong protection, but it is not a complete replacement for the financial and strategic value a key individual brings to the organisation.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>No maturity or survival benefit:<\/strong> This works as a pure risk cover, so there is no payout if the key person survives the policy term.<\/li>\n\n\n\n<li><strong>Taxable claim amount:<\/strong> While premiums may be treated as expenses, the final payout is usually taxed as business income under rules guided by the Central Board of Direct Taxes.<\/li>\n\n\n\n<li><strong>Limited replacement of actual loss:<\/strong> It provides financial support, but it cannot replace experience, relationships, or leadership impact.<\/li>\n\n\n\n<li><strong>Policy linked to employment status:<\/strong> If the key employee leaves or retires, the policy may need to be terminated or reassigned.<\/li>\n\n\n\n<li><strong>Eligibility constraints:<\/strong> This typically applies to financially stable businesses, and companies with weak financials may face restrictions.<\/li>\n\n\n\n<li><strong>Higher premium costs:<\/strong> The cost depends on age, health, and role importance, which can make premiums relatively expensive.<\/li>\n\n\n\n<li><strong>Restricted flexibility:<\/strong> Options like loans against the policy or multiple add-on benefits are usually limited.<\/li>\n\n\n\n<li><strong>Consent requirement:<\/strong> The policy cannot be taken without the knowledge and agreement of the insured individual.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">This makes it important for businesses to treat keyman insurance as one part of a broader risk management strategy, not the only safeguard.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">How to Do a Keyman Insurance Policy Purchase in India (2026)<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">A keyman insurance policy in India is purchased by a company through an insurer after evaluating the key employee\u2019s financial impact and completing required documentation, with the company paying the premium and receiving the payout.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The process involves identifying a key employee whose role directly impacts business performance.<\/li>\n\n\n\n<li>It requires evaluating the financial value or contribution of that individual.<\/li>\n\n\n\n<li>Keyman insurance policy purchase includes submitting documents such as financial statements, ITRs, and salary proof.<\/li>\n\n\n\n<li>It is done through insurers or corporate insurance advisors.<\/li>\n\n\n\n<li>This process ensures the company remains the policyholder and beneficiary.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><em><strong>Want to protect your business finances beyond insurance?<\/strong> Try jUMPP, a <a href=\"https:\/\/jumpp.finance\/ask-jai\" target=\"_blank\" rel=\"noreferrer noopener\">wealth management app<\/a>, to track your daily\/monthly expenses, manage your cash flow, and make smarter financial decisions with AI-powered insights.<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Keyman_Insurance_Policy_%E2%80%93_FAQs\"><\/span>Keyman Insurance Policy &#8211; FAQs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1776935000284\"><strong class=\"schema-faq-question\"><strong>What is the maximum age limit for Keyman Insurance?<\/strong><\/strong> <p class=\"schema-faq-answer\">There is no fixed legal limit, but insurers in India usually allow entry between <strong>18 to 65 years<\/strong>, depending on policy terms and risk assessment.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1776935001078\"><strong class=\"schema-faq-question\"><strong>Can we claim ITC on the Keyman Insurance Policy?<\/strong><\/strong> <p class=\"schema-faq-answer\">ITC is <strong>generally not allowed<\/strong>, unless the company is legally required to provide such insurance to employees.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1776935001695\"><strong class=\"schema-faq-question\"><strong>How do you treat the receipt of a Keyman insurance policy amount?<\/strong><\/strong> <p class=\"schema-faq-answer\">The amount received is treated as <strong>business income<\/strong> in the hands of the company and is taxable.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1776935002257\"><strong class=\"schema-faq-question\"><strong>Which insurances are exempt from GST?<\/strong><\/strong> <p class=\"schema-faq-answer\">Life and general insurance services are <strong>usually taxable under GST<\/strong>, but certain schemes like government-backed social insurance or health schemes may have exemptions or lower rates depending on policy structure.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1776935002841\"><strong class=\"schema-faq-question\"><strong>Is the amount received from insurance taxable?<\/strong><\/strong> <p class=\"schema-faq-answer\">In Keyman insurance, <strong>yes, the payout is taxable<\/strong> as business income and does not qualify for exemption under Section 10(10D).<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1776935051530\"><strong class=\"schema-faq-question\"><strong>What is the meaning of a Keyman insurance policy?<\/strong><\/strong> <p class=\"schema-faq-answer\">It is a <strong>business life insurance policy<\/strong> taken by a company on a key employee, where the company pays the premium and receives the payout.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1776935052215\"><strong class=\"schema-faq-question\"><strong>Who is eligible for Keyman insurance?<\/strong><\/strong> <p class=\"schema-faq-answer\">Any <strong>employee, director, or partner<\/strong> who is crucial to the business and directly impacts profits or operations can be insured.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1776935067892\"><strong class=\"schema-faq-question\"><strong>What is the difference between Keyman insurance and life insurance?<\/strong><\/strong> <p class=\"schema-faq-answer\">Keyman insurance protects the <strong>business<\/strong>, while life insurance protects the <strong>individual\u2019s family<\/strong>. The company is the beneficiary of Keyman insurance.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1776935069029\"><strong class=\"schema-faq-question\"><strong>Is the Keyman insurance policy taxable?<\/strong><\/strong> <p class=\"schema-faq-answer\">Yes, Keyman insurance proceeds are taxable in India as business income for the employer, including maturity, surrender, or death benefits. Premiums paid are allowed as a business expense deduction under Section 37(1) of the Income Tax Act, 1961.<\/p> <\/div> <\/div>\n<\/div><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_88 counter-flat ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/jumpp.finance\/blog\/protecting-your-finances\/keyman-insurance-policy\/#What_is_a_Keyman_Insurance_Policy\" >What is a Keyman Insurance Policy?<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/jumpp.finance\/blog\/protecting-your-finances\/keyman-insurance-policy\/#Keyman_Insurance_Coverage\" >Keyman Insurance Coverage<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/jumpp.finance\/blog\/protecting-your-finances\/keyman-insurance-policy\/#Keyman_Insurance_Roles\" >Keyman Insurance Roles<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/jumpp.finance\/blog\/protecting-your-finances\/keyman-insurance-policy\/#Types_of_Keyman_Insurance_in_India_2026\" >Types of Keyman Insurance in India (2026)<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/jumpp.finance\/blog\/protecting-your-finances\/keyman-insurance-policy\/#Keyman_Insurance_Benefits\" >Keyman Insurance Benefits&nbsp;<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/jumpp.finance\/blog\/protecting-your-finances\/keyman-insurance-policy\/#Limitations_of_Keyman_Insurance_You_Must_Not_Avoid\" >Limitations of Keyman Insurance You Must Not Avoid<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/jumpp.finance\/blog\/protecting-your-finances\/keyman-insurance-policy\/#Keyman_Insurance_Policy_%E2%80%93_FAQs\" >Keyman Insurance Policy &#8211; FAQs<\/a><\/li><\/ul><\/nav><\/div>\n","protected":false},"excerpt":{"rendered":"<p>When businesses plan for risk, they think about markets, cash flow, and competition. Very few plan for the sudden absence of the one person who keeps everything running. That gap is exactly where Keyman Insurance fits in. In this blog, learn the purpose and benefits of a keyman insurance policy. What is a Keyman Insurance &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/jumpp.finance\/blog\/protecting-your-finances\/keyman-insurance-policy\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Keyman Insurance Policy in India (2026): Meaning, Benefits, Coverage and Limitations&#8221;<\/span><\/a><\/p>\n","protected":false},"author":4,"featured_media":3958,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[52],"tags":[2720,2719,2715,2718,2717,2721,2722,2716],"class_list":["post-3957","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-protecting-your-finances","tag-keyman-insurance-benefits","tag-keyman-insurance-coverage","tag-keyman-insurance-policy","tag-keyman-insurance-policy-meaning","tag-keyman-insurance-policy-under-income-tax-act","tag-keyman-insurance-roles","tag-limitations-of-keyman-insurance","tag-what-is-key-person-insurance"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>What Is Keyman Insurance? 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Policy?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"ITC is <strong>generally not allowed<\/strong>, unless the company is legally required to provide such insurance to employees.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/jumpp.finance\/blog\/protecting-your-finances\/keyman-insurance-policy\/#faq-question-1776935001695","position":3,"url":"https:\/\/jumpp.finance\/blog\/protecting-your-finances\/keyman-insurance-policy\/#faq-question-1776935001695","name":"How do you treat the receipt of a Keyman insurance policy amount?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"The amount received is treated as <strong>business income<\/strong> in the hands of the company and is taxable.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/jumpp.finance\/blog\/protecting-your-finances\/keyman-insurance-policy\/#faq-question-1776935002257","position":4,"url":"https:\/\/jumpp.finance\/blog\/protecting-your-finances\/keyman-insurance-policy\/#faq-question-1776935002257","name":"Which insurances are exempt from GST?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"Life and general insurance services are <strong>usually taxable under GST<\/strong>, but certain schemes like government-backed social insurance or health schemes may have exemptions or lower rates depending on policy structure.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/jumpp.finance\/blog\/protecting-your-finances\/keyman-insurance-policy\/#faq-question-1776935002841","position":5,"url":"https:\/\/jumpp.finance\/blog\/protecting-your-finances\/keyman-insurance-policy\/#faq-question-1776935002841","name":"Is the amount received from insurance taxable?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"In Keyman insurance, <strong>yes, the payout is taxable<\/strong> as business income and does not qualify for exemption under Section 10(10D).","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/jumpp.finance\/blog\/protecting-your-finances\/keyman-insurance-policy\/#faq-question-1776935051530","position":6,"url":"https:\/\/jumpp.finance\/blog\/protecting-your-finances\/keyman-insurance-policy\/#faq-question-1776935051530","name":"What is the meaning of a Keyman insurance policy?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"It is a <strong>business life insurance policy<\/strong> taken by a company on a key employee, where the company pays the premium and receives the payout.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/jumpp.finance\/blog\/protecting-your-finances\/keyman-insurance-policy\/#faq-question-1776935052215","position":7,"url":"https:\/\/jumpp.finance\/blog\/protecting-your-finances\/keyman-insurance-policy\/#faq-question-1776935052215","name":"Who is eligible for Keyman insurance?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"Any <strong>employee, director, or partner<\/strong> who is crucial to the business and directly impacts profits or operations can be insured.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/jumpp.finance\/blog\/protecting-your-finances\/keyman-insurance-policy\/#faq-question-1776935067892","position":8,"url":"https:\/\/jumpp.finance\/blog\/protecting-your-finances\/keyman-insurance-policy\/#faq-question-1776935067892","name":"What is the difference between Keyman insurance and life insurance?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"Keyman insurance protects the <strong>business<\/strong>, while life insurance protects the <strong>individual\u2019s family<\/strong>. The company is the beneficiary of Keyman insurance.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/jumpp.finance\/blog\/protecting-your-finances\/keyman-insurance-policy\/#faq-question-1776935069029","position":9,"url":"https:\/\/jumpp.finance\/blog\/protecting-your-finances\/keyman-insurance-policy\/#faq-question-1776935069029","name":"Is the Keyman insurance policy taxable?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"Yes, Keyman insurance proceeds are taxable in India as business income for the employer, including maturity, surrender, or death benefits. Premiums paid are allowed as a business expense deduction under Section 37(1) of the Income Tax Act, 1961.","inLanguage":"en-US"},"inLanguage":"en-US"}]}},"_links":{"self":[{"href":"https:\/\/jumpp.finance\/blog\/wp-json\/wp\/v2\/posts\/3957","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jumpp.finance\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jumpp.finance\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jumpp.finance\/blog\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/jumpp.finance\/blog\/wp-json\/wp\/v2\/comments?post=3957"}],"version-history":[{"count":1,"href":"https:\/\/jumpp.finance\/blog\/wp-json\/wp\/v2\/posts\/3957\/revisions"}],"predecessor-version":[{"id":3959,"href":"https:\/\/jumpp.finance\/blog\/wp-json\/wp\/v2\/posts\/3957\/revisions\/3959"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/jumpp.finance\/blog\/wp-json\/wp\/v2\/media\/3958"}],"wp:attachment":[{"href":"https:\/\/jumpp.finance\/blog\/wp-json\/wp\/v2\/media?parent=3957"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jumpp.finance\/blog\/wp-json\/wp\/v2\/categories?post=3957"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jumpp.finance\/blog\/wp-json\/wp\/v2\/tags?post=3957"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}