The Insurance Quoter - Comparison Quotes on Life Insurance & Income Protection

Call us Today! 1800 989 657

Over 30 years’ experience helping Australian’s with their insurance needs

Keyman Insurance

keyman insurance cover

Did you know that many large corporations prohibit executives from flying on the same plane?

This is because the loss of a key team member or executive can seriously harm the business they work for. After all, these people are not just employees – they are an integral part of the business and its key assets. So are the skills, knowledge and expertise they have.

Of course, we understand that you’ve got a lot to deal with. You’re already busy dealing with what’s most important: finding new clients, planning budgets and managing your employees.

After all, your business is priority #1 – right?

Right.

But that’s exactly why it is important to find a few minutes to learn how you can protect your business and ensure its longevity withkey man insurance.

Key man insurance is exactly what it sounds like: a protection plan that covers the most important people in your business.

In a small or mid-sized enterprise, this may mean ownership; one of the directors; perhaps a crucial employee (or two). In short, the people without whom the company will be unable to carry on as it did before.

Remember: when a key team member leaves, it’s not just a professional loss. There’s also the matter of getting over the loss psychologically inside the company; finding a replacement employee or director; making sure the business continues to run smoothly.

All these things cost time and money – and that’s exactly what key man insurance will ensure you have once you secure it for your business.

Here’s how a key man policy works. Once a life insurance policy is purchased for a key employee, you pay the premiums and become the policy’s beneficiary. Should the employee unexpectedly die, you receive a lump sum payoff.

This lump sum can be used to sustain the company – or look after its employees should the death of the key individual also lead to the death of the business.

 

Who Needs Keyman/Key Person Insurance?

Every business has priceless workers they would like to keep forever. Sadly, sometimes life conditions such as sickness or injury takes them away earlier than anticipated. An organisation owns a keyman insurance policy to cover an integral member of firm of their business.

The difference between standard life insurance and keyman insurance is only the ownership structure of the coverage.

Key person insurance is intended to cover the financial loss of any key employee in the company. Regular productivity and profitability may change when a business loses an integral member of staff. Key person insurance can minimise the effect of that loss.

For smaller businesses with associates, it’s made to shield each associate. Right buy-sell agreements allow it to be easy for small business associates to be assured they are able to survive as a company if anything were to occur to their business partner.

Call now to get a quote on keyman/keyperson insurance: 1800 989 657

 

How Much Key Man Insurance Do You Need?

The size of the insurance policy you need depends on your business – but all things being equal, more is always better. If you call us, we’ll help you navigate the best keyman insurance policies in Perth, Brisbane, Melbourne, Sydney and the rest of Australia – but here’s what you absolutely must know for yourself.

First, you want keyman life insurance. Next, you will want to look at multiple insurance policies. Start by asking to get quoted for $1 million, $500,000 and $100,000 – this will give you a good foundation to compare different insurance providers and figure out the size of the insurance you want. It’s important that your keyman insurance is sustainable, so be realistic!

Finally, consider how much time and money your business would need to recover – or close smoothly – in the absence of a keyperson. Would you need to hire freelancers on a short-term basis? Would there be any urgent expenses? How long will it take you, realistically, someone to step in for the missing key person that’s no longer with you?

Nobody plans on dying suddenly – especially not when they’re young and active in business. As a result, it may seem like keyman insurance is not something that you should concern yourself with. However, if you care about your business and everyone that it supports, you can’t afford not to have key person insurance for the people that can’t be easily replaced.

Call now to get a quote on keyman/keyperson insurance: 1800 989 657

Contact us for a quote

See: How to get Income Protection in Sydney, Insurance Brokers Brisbane

Read: What is Keyman Insurance

Insurance Partners

  • ClearView
    Macquarie Life
    One Path insurance
  • allianz insurance
    Zurich
    comminsure insurance
  • asteron Insurance
    mlc insurance
    TAL insurance
  • aia insurance

Case Studies

ImageDarren is a self employed landscaper, married with 3 children under the age of 7. Darren and his wife Suzanne met whilst traveling... Find out more