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Buy / Sell / Key Person Insurance

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Buy/Sell  and Key Person Insurance

If you are involved in a business with a partner or partners then each of you would normally hold an equity stake and the success of the business becomes a collective of each partner’s efforts and work.

Why do I need Buy / Sell or Key Person Insurance?

If you are involved in a business with a partner or partners then each of you would normally hold an equity stake and the success of the business becomes a collective of each partner’s efforts and work. But what would happen if one of the partners unexpectedly dies? Well, unless that partner has bequeathed their share of the business to the remaining partner/s, they may find themselves with the deceased partners spouse / de facto or estate as their new business partner.

How does it work?

Effectively when a buy / sell insurance policy has been effected between business partners and one of them dies, the business is paid the life insurance benefit which is then used to purchase that persons share of the business from the estate giving ownership to the remaining business partners. This, of course, must be bound by contract when the insurance is established and all interested parties can get on with their own interests. Serious discussions need to be held and everyone needs to understand the outcomes of such a transaction. We will assist in these discussions and the whole process, obtain quotes from various life insurers and advice on each individual case accordingly.

What is Key Person Insurance?

Key Person Insurance may sometime be confused with buy / sell insurance and while life insurance is a common link between the two, the reasoning and process is somewhat different. Key person insurance is a life insurance policy taken out by a business / company on a person in that business who may be seen as a driving force, an influence or one who holds a significant role in the business. I life insurance policy is taken out and owned by the company itself and in the event of the key person passing away the policy benefit is claimed by that company and generally used to fund the replacement of a person with similar capabilities, experience and worth.

What our clients say

  • “Cover your Assets”

    You don't usually give a great deal of thought about insurances that you have until the worst happens, then it's all you think about. The advice we get from Ian Jones Insurance Brokers makes it obvious that they have done the thinking for us. They have enabled us to recover from losses over the years that bring comfort in knowing that they have done what their catch phrase states - Cover your Assets

    Sam Miranda, Sam Miranda of King Valley Pty Ltd

  • “Strongly recommended”

    It's refreshing to see someone who takes a great deal of interest in our business to ensure that they get the complete picture of what we do. Ian Jones Insurance Brokers seems to go that extra mile to make sure that we know what we have and how it needs to be protected. We would strongly recommend dealing with Ian Jones Insurance.

    Josh Ferris, Director, Ferris Building Pty Ltd

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    It’s great to have someone providing insurance product information with great knowledge….even better when they can spell it out to you in easy to understand terms

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    Every time we need to call and get some insurance advice or assistance, we get the answer to what we need to know, efficiently and in a courteous, friendly and professional manner. That's why we have insured our business and other assets with Ian Jones Insurance Brokers for the past 10 years

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  • “Highly recommended”

    We have used the services of Ian Jones Insurance Brokers for over 14 years now and have found the overall service and professionalism to be of a 1st class standard. The most important aspect we found was the speed and efficiency of claims handling and management. Highly recommended

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    Carmen, I appreciate all your help. I must say since I've had all my insurances with you, how happy I am with the service provided. You always do a great job. Many thanks

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  • “Outstanding”

    What a pleasure to be able to comment on the outstanding difference your company has made to the management of the rather complex insurance portfolio I presented. I was shocked to find after your initial review that I had been paying some insurances for years that would never have been paid out should I have a claim and this included a house in a bushfire zone. The courteous interactions with your professional staff are always helpful, and even enjoyable. Thank you

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  • “Excellent advice & service at a very reasonable price”

    A number of our Andersens stores currently use the services of Ian and his team and he has presented at our conferences in the past. I have found him to provide excellent advice and service at a very reasonable price

    Brian Cooper, CEO, Andersens Carpets

Get the right advice. Personal & Professional.

We will assist in these discussions and the whole process, obtain quotes from various life insurers and advice on each individual case accordingly.