In a Key Employee Disability Income Policy, who is not considered the insured?

In a Key Employee Disability Income Policy, the individual considered the insured is the key employee whose disability would significantly impact the business. This individual is often crucial to the business's function and success, which is why the policy is established.

However, in this context, the term "not considered the insured" refers specifically to the option stating "Insured," which might be confusing at first. But it highlights a distinction in the roles involved in the policy. The other roles in a Key Employee Disability Income Policy, such as the premium payor and policyowner, may have different distinctions that relate to who benefits from the policy or who is responsible for payments, rather than who the policy is meant to safeguard.

The recipient of the proceeds typically refers to the business or the owner of the policy, who receives the disability income benefits if the insured key employee becomes disabled. The premium payor can be the business as well, which maintains the policy by paying for it.

In summary, the "insured" in this context refers specifically to the key employee themselves, emphasizing that while they are critical to the policy, they do not fulfill a role designated by the policy structure in terms of ownership or receipt of proceeds.