Which type of insurance would typically cover the monthly expenses of a business in case of a key employee's disability?

Key person disability income insurance is specifically designed to provide financial protection to a business in the event that a key employee becomes disabled and is unable to work. This type of insurance helps cover the ongoing expenses of the business, such as payroll, rent, and operational costs, during the period that the key employee is unable to contribute.

This type of coverage is essential for businesses that rely heavily on the skills, knowledge, and relationships of specific individuals. By having a policy in place, the company can maintain stability and mitigate the financial impact of losing a crucial team member, ensuring that the business can continue to operate smoothly.

The other options do not specifically address this need. Group health insurance primarily covers medical expenses for employees but does not provide income to cover business operational costs. Long-term care insurance is aimed at covering the costs associated with assisted living or nursing home care, and life insurance provides a death benefit rather than compensation for disability. Thus, key person disability income insurance is the most appropriate choice for businesses looking to protect themselves against the financial consequences of a key employee's disability.