The correct answer is C. Profitability of the business and the role of the keyman in that profitability.
A keyman insurance policy is a type of life insurance policy that is taken out on a key employee of a company. The purpose of the policy is to protect the company from financial loss if the key employee dies or becomes disabled. The amount of the policy is usually based on the key employee’s salary and the company’s profits.
The profitability of the business is important because it determines how much the company can afford to pay for the policy. The role of the keyman in that profitability is also important because it determines how much the company would lose if the keyman died or became disabled.
The income of the keyman is not as important because the company is not directly affected by the keyman’s income. The history of the business is also not as important because the company’s past profits are not necessarily indicative of its future profits. The state of the national economy and rate of inflation are not relevant to the issue of a keyman insurance policy.