In accounting, it is an insurance policy is issued by an insurance firm not related (i.e., not a related party) to an entity that uses its proceeds only to cover employee benefits. These proceeds are completely not available to the entity’s creditors or owners in any case, excluding specific situations where these proceeds are 1) in excess of the actual obligations arising in connection with employee benefits 2) paid to the entity as a reimbursement of any benefits that have already been paid to employees.