Janitor Life Insurance

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Janitor Life Insurance

A life insurance policy owned by a corporation on a large number of its employees. Janitor life insurance is an abuse of key person insurance, which compensates a company for the loss generated by the death of a significant employee. In the 1990s, it became common for companies to purchase key person insurance on many employees and even keep them after these employees left the company. Companies deducted the premiums and collected the death benefit when employees finally died. Janitor life insurance is legally limited, but still occurs. The term is slightly derogatory, as is its alternative, dead peasants life insurance.