Key Person Protection
See if you qualify for Key Person Protection and get a clear, free quote.
Key Person Protection is normally owned by the business and designed to pay the business after the death or, where selected, covered critical illness of an insured person who is important to its financial performance.
A valid benefit can provide capital at a difficult time. It cannot guarantee continuity, replace the person's knowledge or relationships, or determine the tax treatment of premiums or benefits.
Key Person Protection
See if you qualify for Key Person Protection and get a clear, free quote.
A few short questions about the business and the people it depends on. No medical questions and no obligation to proceed.
At the end you simply leave your name and contact number, and the team comes back to you. There is no need to call us unless you would prefer to.
Question 1 of 6
Who is most important to the business financially?
No medical questions are asked here. Your answers are only used to prepare the conversation and are not an application for insurance.
Who can be a key person?
A key person is not defined only by job title or shareholding. It may be a founder, director, salesperson, technical specialist, relationship owner or another person whose absence could materially affect profit, revenue, delivery, borrowing or confidence in the business.
Questions that can help identify the risk include:
- How would revenue or profit change if this person were lost?
- Would customers, contracts or supplier relationships be at risk?
- How long and how much would recruitment and replacement cost?
- Does the person support lending, guarantees or investment?
- Is knowledge concentrated in that person?
- Would the business need working capital during a transition?
How it works
- 01
The business identifies the person and financial exposure it wants to insure.
- 02
A cover amount and term are considered using an evidenced valuation method.
- 03
The business applies for and normally owns the policy and pays the premiums.
- 04
The insured person completes the health, lifestyle, occupation and other underwriting requested by the insurer.
- 05
If a covered event occurs and the claim is valid, the insurer pays the policy benefit to the policy owner under the terms.
How much cover might be considered?
There is no universal formula. A business may consider a multiple of attributable profit, the cost of replacement, a contribution to revenue, debt exposure or a combination. The insurer may require financial justification and apply its own limits.
Life and Critical Illness options
Cover may be arranged for death only or may include specified critical illness events where offered. Critical Illness Cover pays only when a condition in the policy meets the insurer's definition and any applicable criteria.
Tax and accounting
The treatment of Key Person premiums and benefits depends on the purpose of the policy, the relationship between the business and the insured person, ownership and other facts. Do not assume that premiums are deductible or benefits tax-free. The business's accountant or tax adviser should confirm the intended treatment.
What happens after a claim?
The business decides how to use a benefit, subject to any contractual commitments. Funds might support recruitment, working capital, debt repayment or a transition plan. The insurance does not require or guarantee a particular operational outcome unless the policy or another agreement expressly says so.
How Everlife helps
We explore the person's role, the financial exposure, existing cover, desired term and affordability. We explain the available insurance options and material conditions. Any recommendation is linked to the business's assessed demands and needs.
Frequently asked questions
Quantify the financial exposure behind a key role.
Submitting an enquiry does not put cover in force and is not an application.