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Life Insurance, TPD, Trauma, Income Protection

Keyman revenue protection


Generally, the biggest asset to a business is the health of it’s key people. Keyman Revenue Protection guarantee’s that your most valuable asset is covered by providing enough money to compensate for the costs associated with replacing a key person.


Almost every business has the computer, copier and car insured. Yet it’s important to recognise that these are not the most valuable asset to your business. Often, it is the contribution of key individuals which plays the greatest significance in generating business revenue.


Tax treatment

Keyman revenue premiums are generally tax deductible, but the payments received are considered income and are subject to tax.

Provides a cash lump sum that can be used by your business to:
  • Compensating for the loss of business revenue.

  • Pays the cost of finding and hiring a suitable replacement person.

  • Protects the business profits.

  • Maintains the value of the business as a going concern.

How much life cover should I have?


There are two common methods to determine the level of keyman revenue benefit required:


  1. 3 – 5 times the Keyperson’s Salary + Cost of finding, hiring, training and replacing the Keyperon = Maximum Insurable Amount

  2. Annual profit or revenue contributed by the Keyperson (maximum 3 times for revenue or 5 times for profit) + Cost of finding, hiring, training and replacing the Keyperson = Maximum Insurable Amount


You should also consider:


  • Who is missed most when on holiday?

  • Would the business miss their contribution if sick or disabled?

  • How long would it take to replace them, how could that be funded?

We can help you work out an appropriate level of life cover to suit your needs.

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