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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

  • “A natural part of our business”

    I have had a relationship with Ian Jones Insurance for many years now. They feel like a natural part of our business to be involved with

    Mez Sheehan, Managing Director, MPM Group of Companies

  • “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

  • “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

    Prof. Robert Clancy, AM

  • “An ongoing relationship”

    We have had an ongoing relationship with Ian Jones Insurance for some years now. The reason we continue to do business with the company is because we are impressed with the high service level, the speed at which the quotes are produced, the competitive pricing and the assistance that is provided. Our current account executive, Amy Thompson, embodies all of these qualities and is a joy to deal with on every occasion

    Annette and Andrew Metcalf

  • “Easy to understand terms”

    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

    Brad Jones, Director, Admix Media.

  • “Always do a great job”

    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

    Dietmar Lederwasch

  • “Pleasant & professional”

    Just a quick note to say how much I appreciated the attention to my insurance renewal by your employee at Raymond Terrace office, Kai Cameron. It was only a matter of hours before he got back to me with a better price for my house and contents insurance which I was pleased to accept. I just wanted to tell you that I found Kai to be a very pleasant and professional, a credit to your office.

    Andrea Waddell

  • “Fantastic to deal with”

    They’re fantastic to deal with. We would always recommend that other businesses give them a go because they make insurance easy

    Brett Young, Director, Miraclereach Pty Ltd

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.