The sum assured under keyman insurance policy is generally linked to which of the following?

The correct answer is: A. Keyman income.

A keyman insurance policy is a type of life insurance policy that is designed to protect a business from the financial loss that would result from the death or disability of a key employee. The sum assured under a keyman insurance policy is generally linked to the keyman’s income, which is the amount of money that the business would lose if the keyman were to die or become disabled.

The other options are incorrect because:

• Business profitability is not a reliable measure of the financial loss that a business would suffer from the death or disability of a key employee. For example, a business that is currently profitable could become unprofitable if the keyman dies or becomes disabled.
• Business history is not a reliable measure of the financial loss that a business would suffer from the death or disability of a key employee. For example, a business that has a history of profitability could become unprofitable if the keyman dies or becomes disabled.

In conclusion, the sum assured under a keyman insurance policy is generally linked to the keyman’s income. This is because the keyman’s income is the most reliable measure of the financial loss that a business would suffer from the death or disability of a key employee.