Key-man Insurance: security and financial independence
Key-man insurance security (and potentially, financial independence) is provided for your dependants at a time of their greatest need.
Business survival following the death/ disablement of a key person…
Whether you are –
- self-employed under a company structure, or
- dependant on a key person for technical or other skills..
you should address the consequences of that person’s untimely death or permanent disablement. Take prompt action to secure financial protection for your family and for other employees and stakeholders in the business.
Accident and/ or serious illness can change the future of our lives in a matter of moments. The following Case Study highlights the urgency of such action. Your potential exposure to such a risk event, warrants consideration of an insurance portfolio –
- adequate to protect the financial futures of –
- your family, and
- your business associates’ families.
Case Study: Key Man recognition
A valued client tragically lost his life before the birth of his second child. At the time, the fledgling business he had operated was in considerable debt. His family was reassured that the insurance protection he had acquired on our recommendation would mitigate their financial grief.
it was satisfying deliver the claim settlement to the family and see the relief on their faces to know that –
- having determined that the company debts,
- the home mortgage, and
- some capital on which to base some investment income
would constitute the appropriate level of cover, he had adequately provided for their financial future. His widow could clear all debt and had a source of income to supplement their ongoing living costs. The father had provided for anticipated costs of raising two young children.
In this case we had taken the policy as a Key-Man policy under the company structure, providing protection in the event of loss of capacity (Total and Permanent Disablement), or loss of life (Term Life). Whilst the family may take a long time to recover from the loss of a loved one, the financial certainty provided through this cover has meant that they can deal with the grief without financial distractions.
How much does key-man insurance cost?
Protection similar to that of our featured client is available to most families and/ or small businesses. The investment to achieve that has an annual cost less than the superannuation guarantee amount being set aside for most Australian workers. The factors that affect cost include age at time of approval of policy protection, associated health issues, the amount of cover, occupation, smoker-status – and features that are relevant to individual circumstances: to determine the cost to you for the protection most relevant to your needs, see below for our contact details.
Key-man insurance can be arranged for you?
Meet with one of the Continuum Financial Planners Pty Ltd experienced advisers to have your personal circumstances reviewed to determine your need for the protection available. Working to our mantra –
- we will listen to your circumstances,
- confirm our understanding of your financial position – and needs; and
- assess those matters so as to provide recommendations as solutions to your financial protection needs,
whether they include risks you can afford to retain; or prefer to refer them to an insurer.
For personalised, professional wealth management advice, arrange an appointment with one of our experienced advisers –
- call our office on 07-34213456; or
- at your convenience, use the linked Book A Meeting facility
to ensure your family and any business partners/ associates have the peace of mind that goes with financial security.
(This article was originally published by us in June 2012. It has been occasionally need refreshed/ updated, most recently in January 2025.)
