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.
The Finance Brokers Association of Australia (FBAA) is a national association representing finance and mortgage loan writers throughout Australia.
AMP Accredited Financial Planners have been helping Australians by delivering the right balance of security and performance for over 160 years.
The Tax Practitioners Board provides an overview of our continuing professional education requirements for tax agents, BAS agents and tax (financial) advisers
AFG is now one of the largest providers of mortgage broking services in the country, offering more than 1,400 financial products from Australia’s leading lenders.
© 2020 MINT FINANCIAL SOLUTIONS PTY LTD is a Corporate Authorised Representative and Credit Representative of AMP Financial Planning Pty Limited ABN 89 051 208 327 Australian Financial Services Licence 232706 and Australian Credit Licence 232706.