A type of life insurance policy most commonly used by businesses for employees is:

An endowment policy is a life insurance product that pays out a lump sum after a specific term or upon the policyholder's death. While beneficial for savings and investment purposes, it is not predominantly used by businesses for employee coverage, as it focuses on individual policyholders rather than groups.

Equity indexed insurance policies are designed to provide life insurance coverage with a cash value that can grow based on a stock market index. This type of policy is more complex and often appeals to individuals seeking investment growth, making it less common for businesses to use for employee insurance compared to group policies.

A key person policy is a specific type of life insurance that protects a business against the loss of a key employee, providing financial support to cover the impact of their absence. While important for safeguarding against the loss of essential personnel, it does not serve as a general coverage option for all employees, which is the primary function of a group policy.