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In the context of a Key Person Disability Insurance policy, the correct beneficiary of the benefits is the employer. This type of insurance is designed to protect businesses from the financial impact of a key employee’s inability to work due to a disability. The policy provides income replacement for the business, helping cover expenses and maintain productivity while a replacement is sought or the key person recovers.

Choosing the employer as the beneficiary makes sense because the key employee is crucial to the company’s operations and their absence can lead to significant financial loss. This insurance serves to mitigate that risk by providing funds to the employer during the key person's disability period so they can manage the situation effectively.

The other options, such as the insured employee or their family, are not correct since the purpose of this insurance is to benefit the business directly rather than provide individual support to the employee or their family. The insurance provider likewise does not benefit from the policy in the same sense; they simply administer the policy and pay out claims when warranted. Thus, the focus of Key Person Disability Insurance is on protecting the employer’s interests.