Key person Insurance
Typically, the greatest asset to a business is the intellectual capital and personal effort by key people. Key person insurance is an asset protection for your business, recognising that the continued contribution of key people is critical to the long term success of any business.
Key person – Revenue protection
Almost every business has the computer, copier and car insured. Yet it’s important to recognise that these are not the most valuable asset to your business. Often, it is the contribution of key individuals which plays the greatest significance in generating business revenue.
Key person Revenue Protection can assist in:
Things to consider include:
Methods of Calculating Keyperson Revenue Cover
3 – 5 times the Key person’s Salary + Cost of finding, hiring, training and replacing the Keyperon = Maximum Insurable Amount
Annual profit or revenue contributed by the Keyperson (maximum 3 times for revenue or 5 times for profit) + Cost of finding, hiring, training and replacing the Keyperson = Maximum Insurable Amount
Buy Sell insurance
What would happen to the ownership of your business if one partner suffered a disability, critical or terminal illness, or even died unexpectedly?
Would the remaining owners be in a financial position to buy out the departing owner’s share of the business? And how much should the departing owner or their estate receive?
Buy Sell insurance, together with a legal agreement outlining the transfer of control and ownership of the business, can protect all business owners by providing the necessary funds to buy out an owner’s share of the business should they suffer a disability, specified trauma or death.
Together, this insurance and transfer agreement is known as a Buy Sell agreement, or Buy Sell arrangement.
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