Key Person insurance (sometimes referred to as Key Man Insurance) is a way to structure life insurance policies that are for business purposes in order to protect the business against accident or illness of key people in a business.
Key Person Insurance is used widely from large through to small businesses to insure the company against death, disability or illness of an important member of the business – usually a partner or director however can be other important members of a business such as a large revenue earner. The policy is owned by the business and the benefit is paid to the business sin the event of a claim to contribute to revenue lost and costs associated with the Key Person’s recovery time or replacement.
The amount insured would reflect the replacement of these costs.
Sometimes Key Person Insurance is used to insure a Key Person’s life against the shares in the company or business. This agreement is usually supported with a partnership agreement to ensure that the proceeds from the insurance benefit is passed to the Key Person’s family or beneficiaries in the event of death or serious disability/illness to replace the part ownership in the company. The benefit here is that remaining partners in the company do not have to find the capital required to purchase remaining shares in the business.
Please make an online enquiry or call us and we look forward to discuss any queries that you have and assistance that you require regarding Key Person Insurance.
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After having had my income protection, with a company based abroad, for the last 15yrs I recently decided to sort it here in Australia.(Now based here so it makes sense.)
Needless to say the thought of trying to get a similar product for a good price was a concern....
Dr S.T (BDSc)
Dentist
Newman, WA.
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