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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

  • “The right information to make the right decision”

    The people at Ian Jones Insurance Brokers will always let you know what insurances are suitable to your particular situation so at least you know what you can do about it with the right information so as we can make the right decision

    Peter Sutherland, PJS Plumbing Pty Ltd

  • “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

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  • “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 seem 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

  • “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

  • “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

  • “Trouble Free”

    Our dealings over the past 20 years with Ian Jones Insurance Brokers has been completely trouble free which, to our business, is paramount. Insurance can be time consuming and one of those business transactions that requires total trust and they give us 100% confidence in their professionalism and knowledge

    Dr Ed Kosy, Director, ABC Orthodontics

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    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.