Key Person Insurance NZ

What is Key Person Insurance?

Key person insurance (also known as key man insurance) provides financial protection for your business if a key employee dies or becomes critically ill. The loss of a key person can have devastating financial consequences for a business, from lost expertise to disrupted operations.

This insurance pays a lump sum to the business, which can be used to cover lost profits, repay debt, recruit a replacement, or stabilise operations during a difficult transition.

What Does It Cover?

• Death benefit (lump sum)
• Critical illness benefit
• Temporary disability benefit
• Revenue protection
• Debt repayment
• Recruitment and training costs

Who Needs Key Person Insurance?

Key person insurance is essential for:

• • Small businesses with key founders
• • Companies with essential salespeople
• • Businesses with specialised expertise
• • Partnerships with key partners

Typical Costs

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

• • $100K cover: From $500/year
• • $250K cover: From $1,000/year
• • $500K cover: From $2,000/year