Business Life Insurance NZ

What is Business Life Insurance?

Business life insurance (also known as key person insurance or business succession insurance) provides a lump sum payment to your business if a key person - such as a partner, director, or critical employee - passes away. This financial protection helps your business survive the unexpected loss of someone whose knowledge, skills, relationships, or capital are essential to operations.

In New Zealand, many business owners rely on key people to drive success. If a key person dies, the financial impact can be devastating - from lost revenue and client relationships to difficulties meeting financial commitments. Business life insurance provides the funds needed to navigate these challenging times.

What Does It Cover?

• Lump sum payment on death of key person
• Funds for partner/shareholder buyout
• Business debt repayment
• Revenue loss and operational continuity
• Recruitment and training costs for replacement
• Legal and advisory expenses

Who Needs Business Life Insurance?

Business life insurance is essential for:

• • Partnerships with multiple owners
• • Companies with key shareholders
• • Businesses that rely on key employees or directors
• • Family businesses with critical family members
• • Businesses with business loans or mortgages

Typical Costs

Business life insurance costs vary based on the key person's age, health, and the coverage amount. Typical costs start from:

• • Basic key person cover ($250K): From $500/year
• • Partnership buyout cover ($500K): From $1,000/year
• • Comprehensive business protection ($1M): From $2,000/year