All businesses depend on key people – be it the owners, executives and employees with specialist skills, provide the capital, generate the revenue, manage the day-to-days, plan for the future and create the profits. Small to medium sized businesses are particularly exposed to unplanned events such as the sudden death, illness or disablement of these key people, which can severely impact the business financially. That’s where Life Insurance policies for your business can be considered to protect against these possible impacts. Critical covers include;
Think of it as Life insurance for the most critical staff members in the business. Cover is designed to pay a benefit to the business following; the sudden death; critical illness and permanent disability of a nominated key person within the business. The policy provides funds to pay expenses and debts or replace lost revenue to keep a business afloat.
Buy-Sell Insurance (or Partnership Buyout Insurance)
Buy/Sell Insurance is a mechanism providing a lump sum of money for remaining partners to purchase a business share from a departing co-owner following death, permanent disability or trauma. This allows for a quick transfer of ownership to minimise disruption to the business. Such cover is often welcomed by the family of the departing owner as it can be an extremely stressful time for them in dealing with the death or incapacitation of their loved one.
Business Expenses Insurance
Similar to Income Protection Insurance, but designed for business owners. If the business owner is unable to work due to illness or injury, the policy will pay ongoing fixed business expenses, including; rent, loan repayments, utilities, phone/internet, insurance, leases, salaries etc. Cover typically operates for up to 12 months.
Disclaimer – “This material contains general information only and may not suit your particular circumstances. To decide if a policy is right for you please carefully read the relevant Product Disclosure Statement (PDS) and/or Policy wording. While we have exercised due care and skill in preparing this information, Optimum Insurance Services (Optimum) does not accept any legal responsibility or liability for negligence or otherwise to you or anyone else who seeks to rely on this information. This includes, without limitation, loss arising from a possible failure of the information to comply with statutory or regulatory requirements or the failure of the information to identify other terms and conditions beyond those considered in this document. You should obtain advice to ensure that your policy provides adequate cover for your circumstances.
“Optimum Insurance Services Pty Ltd is a Corporate Authorised Representative of Insurance Advisernet Australia Pty Ltd (Car No. 291220), Australian Financial Services Licence No 240549, ABN 15 003 886 687.”