Key Person Insurance
A ‘key person’ is someone who’s continued association with a business provides that business with a significant and direct economic gain. Economic gain means more than just profits. It can, amongst other things, also include cost savings, capital injections, goodwill, access to credit and access to customers.
The owners of a business will usually be key people. Key people can also include:
- Managing director
- Sales manager
- Financial controller
- Computer programmer
- Specialist engineer
- Famous actor
- Working director
- Silent partner
Most businesses take out insurance cover for assets that do not actively make them profits – their plant, equipment vehicles and buildings. It is the human asset that, through initiative, drive, skill, specialist knowledge and ingenuity which, can actively generate profit from your business.
Key person insurance can compensate the business for loss of two different qualities:
- business profitability (revenue purpose), and
- the capital value of the business (capital purpose)
Note: The type of policy used can impact on the taxation treatment of the premiums and proceeds.
For more information or to make an appointment with an adviser to discuss your specific Business needs contact us on (07) 3170 3707 or click here to email us.
146 Bloomfield Street, Cleveland
PO Box 1319, Cleveland QLD 4163 4163
Phone: 07 3170 3707
ABN: 16 074 508 071
Monday-Friday: 8:30am to 5pm
Coopers N’Cents Financial Services ABN 16 074 508 071 trading as
HFB Wilsons Pty Ltd – ABN 63 616 059 324 as a Corporate Authorised Representative
No 253397 of Clearview Financial Advice Pty Ltd
AFSL No: 331367 ABN: 89 133 593 012 Website: www.clearview.com.au