“Key Man” Insurance

Let’s play the ‘what if’ game.

What if something happened to you or a key member of your organisation? Would your business continue to operate? Could you still generate revenue? Would you know what to do or how to operate that special piece of machinery?

It takes years to build a successful business – but just seconds to end one

Keyman Insurance is an insurance policy taken out by your business to protect critically important personnel in the event of accident, illness or death. As an example cover could include;

  • The sole proprietor or CEO of a business
  • A senior business partner with important networking connections
  • A high achieving salesperson who brings in significant revenue
  • A technician or designer with specific knowledge that impacts on operational performance

There are two types of policies available. Revenue or Capital protection.

To calculate the level of cover & which type of policy is best, consider the following financial costs or requirements;

  • Cost of paying off loans, especially those personally guaranteed by the key person.
  • Rebuilding your income and revenue.
  • Buying ownership of the company from the key person’s inheritors.
  • Recruiting and training a new staff member or hiring a temporary replacement.
  • Replacing lost goodwill and maintaining business capital.
  • Paying benefits to the key persons beneficiaries.

Any other fees, lost clients, customers or revenue, damage to your business and other expenses.

Other considerations

  • Your Key man insurance policy can cover disability or temporary inability to work, or death only.
  • If the business has a buy/sell agreement in place. If a key person dies, this agreement automatically lets other partners acquire their portion of the business ownership. Some policies may require a buy/sell agreement, but most do not.
  • There are some exclusions with policies only paying benefits in certain circumstances. For example, they may not pay for self-inflicted injuries or certain accidents.

For further information or to receive a no obligation FREE quote, please contact our financial planning team on 03 5833 3000 or email wealthadvisors@plus1group.com.au

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Open Hours

Monday to Friday
8:00am to 5:00pm

Closed Public Holidays

Contact Us

27 Welsford Street
Shepparton, VIC 3630

T: (03) 5833 3000
F: (03) 5831 2988
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Sentinel Wealth Unit Trust T/As Plus 1 Wealth Advisors (ABN:11 408 695 672) is an Authorised Representative of Sentinel Wealth Managers Pty Ltd
(ABN: 73 108 328 294) AFS Licence 322211 | Financial Services Guide