Lifestyle Protection Plan

JJJ Designs is an architectural and design business operated by 3 partners, John, 36 Engineer, James, 42 Architect and Jerry 39 Quantity Surveyor, with 5 support staff and an estimated value of $1.2 million. Jerry passed away after a terrible accident. Keyman insurance allowed John and James to buy Jerry’s share in the business for $400,000 which provided Jerry’s family with money to get on with their lives.

A Keyman policy is designed to protect a company from the loss of a key person within the business. Keyman insurance can help cover the costs of replacing a key person in the business or help compensate for losses that occurred due to the loss of the key person from within the business.

In partnerships, Keyman cover can help protect each partner. If a partner of a business dies, usually the other partner(s) need to purchase the shares of the business from the deceased family. A Keyman policy permits this to be easily facilitated with correct buy-sell agreements in place.