Which statement about a Key Employee Life policy is NOT true?

In the context of a Key Employee Life policy, it's important to understand the nature of such policies. Typically, the beneficiary of a Key Employee Life policy is not the key employee themselves but rather the employer or the business. This arrangement is designed to ensure that the business receives funds in the event of the employee's untimely death, thus providing the company with financial resources to manage the impact of losing a key individual.

The policy is owned by the employer, which means that it is part of the business’s risk management strategy. The focus is on mitigating potential financial losses that could arise from the death of an essential employee. This coverage helps the business maintain stability by funding costs related to hiring and training a replacement or covering any operational disruptions caused by the key employee's absence. The policy essentially serves as a safety net, ensuring that the business can navigate through the challenges linked to losing vital personnel.

Understanding these details clarifies why the assertion that the key employee is typically the beneficiary is not true within the context of Key Employee Life policies.